Retail

1H results: Michelin increases income by 23%

Posted on July 29, 2014

Groupe Michelin posted net income of 624 million euros on net sales of more than 9.6 billion euros for the first half ending June 30, 2014. That compares to income of 507 million euros on sales of more than 10.1 billion euros for the first half of 2013.

Based on the exchange rate on June 30, 2014, Michelin recorded net income of $851.8 million on net sales of $13.2 billion for the first half of fiscal 2014. Its income-to-sales ratio was 6.4%.

Michelin's operating income was 1.1 billion euros (nearly $1.6 billion), up less than 1% from the previous year.

Here is the first-half breakdown, in U.S. dollars, of Michelin's tire segments.

Tire segment Net sales Operating income

Consumer $7 billion $802.7 million

Truck $4 billion $308.5 million

Specialty $2.1 billion $471 million

“In a competitive environment that persisted through the first half, Michelin met its objective of delivering a further improvement in its performance, with a nearly 200 million euro increase in operating income at constant scope of consolidation and exchange rates,” says Jean-Dominique Senard, chairman, CEO and general partner.

“A continuous flow of innovations praised by vehicle manufacturers and a responsible, ambitious industrial strategy enabled the Michelin brand to maintain its global positions in the forefront of mobility.”

Second-half prediction

Michelin says global demand for car and light truck and truck tires should remain supportive in the mature markets and China in the second half.

"On the other hand, the other new markets are seeing a slowdown, especially in the original equipment segment. At the same time, original equipment demand for earthmover tires should continue to significantly improve, while mining companies are expecting to continue drawing down inventory through the end of the year, although fourth-quarter growth will benefit from favorable prior-year comparatives."

Related Topics: Jean-Dominique Senard, Michelin financials, OTR tires

Comments ( 1 )
  • Lee

     | about 5 years ago

    Hard to believe based on their delivery rate, I waited over 8 months for a 14.00r24 last year.

More Stories
Article Unit Sales Volumes Were Up Nearly 2%

Our recent discussions with dealers leave us with a view that sell-out trends improved in May versus the prior year’s period, re-accelerating from year-over-year contractions early in the year. While always somewhat subjective, we note commentary from installers was at the highest level since October 2017. From a volume standpoint, surveyed dealers reported they saw unit sales volumes up nearly 2% relative to the previous year’s period.

Article Understanding Private Equity Investments in the Tire and Service Business

With the recent combination of private equity-owned Mavis Tire Supply Corp. and Express Oil Change & Tire Engineers (Express Oil Change LLC), it’s a good time for tire dealers to understand how private equity plays the acquisition game differently than strategic acquirers like Monro Inc.

News Toyo's Tire Segment Results Save the Day in 1H 2018

Success in its Tire Business unit partially offset overall decreases in Toyo Tire & Rubber Co. Ltd.'s sales and operating income in the first half of fiscal 2018.

A Mountain View Tire & Service store opened in April 2018 in Wildomar, about 75 miles south of Los Angeles.
Article Building and Buying: Top 100 Dealers Keep Customers Close in a Digital Economy

Tire dealerships on the 2018 Modern Tire Dealer 100 have found a way to battle online tire sales, shrinking tire margins and a tight labor market: by investing in brick-and-mortar locations.

News Yokohama’s First-Half Profitability Improves by 19%

Yokohama Rubber Co. Ltd. reported net income of 17.8 billion yen on net sales of 309.7 billion yen for the half year ended June 30, 2018. That compares to income of 15.0 billion yen on sales of 304.2 billion yen for the first half of 2016.

News New Tire Pros Ad Campaign Costs $1 Million

American Tire Distributors Inc. (ATD) has launched a $1 million ad campaign highlighting the work of its Tire Pros franchisees. The message is hassle-free customer service.

News New Shop Management System Uses AI to Learn From Every Inspection

Auto Profit Masters LLC (APM) has introduced a cloud-based shop management system called Shop 4D that uses artificial intelligence (AI) to run repair shops.

News Mitchell Partners with GM to Launch Collision Repair Network

Mitchell International Inc. and General Motors Corp. have jointly launched the enrollment portal for the GM Collison Repair Network. As of Aug. 8, 2018, any collision repair facility in the U.S. may apply for inclusion in the network.

News Pirelli Continues to Rely on High Value Tires

Pirelli & Cie SpA posted net income of 181.9 million euros on net sales of more than 2.6 billion euros for the second quarter ended June 30, 2018. That compares to income of 67.6 million euros on sales of nearly 2.7 billion euros for the same period in fiscal 2017.

News Continental AG Ups Profitability in 2Q 2018

Continental AG posted net income of 822.1 million euros on net sales of 11.3 billion euros for the second quarter of fiscal 2018 ended June 30. That compares to income of 745.4 million euros on sales of 11 billion euros for the same period last year.

Cooper Tire has launched a tire and vehicle safety campaign for young drivers in conjunction with DoSomething.org.
News Cooper Tire Takes Part in Young Drivers Safety Campaign

Cooper Tire & Rubber Co.’s Tread Wisely program, a tire and vehicle safety campaign for teens and young adults, and DoSomething.org, the largest not-for-profit organization exclusively for young people and social change, have launched a national tire safety campaign for young drivers.

News Cooper Sees New Products and More Online Sales as Path to Growth

Cooper Tire & Rubber Co. will unleash 18 new products over a 24-month timeframe, and has found another online avenue to sell tires to consumers.

Be the First to Know

Get the latest news and most popular articles from MTD delivered straight to your inbox. Stay on top of the tire industry and don't miss a thing!