Michelin Boosted Income, Sales in 2019
Groupe Michelin achieved segment operating income of slightly more than three billion euros on overall, global sales of 24.1 billion euros during 2019.
Segment operating income increased by 179 million euros over previous-year levels, at constant exchange rates, according to the tire manufacturer.
Michelin's overall sales increased by 9.6% from 2018 levels.
The company's net income in 2019 totaled slightly more than 1.7 billion euros, a 70-million euro increase over 2018 results.
Michelin's total volume dropped 1.2% during 2019, "in line with the markets," say Michelin officials.
The segment operating income increase included a 324-million euro "positive net impact... in the price mix and raw materials costs, attesting to sustained price discipline and a product mix enhanced by the growth in sales of 18-inch and larger passenger car tires, the speciality businesses and the balance between original equipment and replacement business" in the company's sales.
Michelin's free cash flow totaled 1.14 billion euros in 2019, an improvement of 3.1 billion euros "over the previous year," when cash flow was impacted by Michelin's acquisition of Camso, the creation of the National Tire Wholesale joint venture and other activities.
"In a highly unstable environmnent, Michelin successfully maintained its market share and improved its earnings," says Michelin Managing Chairman Florent Menegaux.
In 2020, Michelin is targeting "operating income at constant parity, slightly down on the prior year, and free cash flow of more than 1.5 billion euros."