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
News Auto Care Association Names Gabrielle Hopkins to Lead Government Affairs

The Auto Care Association has hired Gabrielle Hopkins, a Federal Motor Carrier Safety Administration (FMCSA) executive, to lead its government affairs department as vice president, federal affairs.

Josh Gilbert works to identify a mystery noise complaint from a customer. He’s one of 275 technicians on the company’s $15.8 million payroll.
Article Lessons Learned From a Lousy Review

With 450 employees and 57 stores, John Quirk is realistic that things can and will go wrong. “We work on over 30,000 cars a month. You’re going to make a mistake. When it happens, get the customer a rental car, put our best technician on it and fix the frickin’ thing as fast as you can.”

John Quirk is chairman and CEO of VIP Inc. dba VIP Tires & Service.
Article Meet John Quirk

John Patrick Quirk

John Quirk, chairman and CEO of VIP Tires & Service, is Modern Tire Dealer's 2018 Tire Dealer of the Year.
Article It's All About Service for 2018 Tire Dealer of the Year John Quirk

At the end of 2012, John Quirk made a deal that would forever change his business.

"The actions we are taking are intended to reduce our debt and create financial flexibility so we can enhance the strategic initiatives, key technologies and talent that will drive our transformation forward," says Schuette.
News ATD Reduces Debt by Up to $1.1 Billion

American Tire Distributors Inc. (ATD) has reached an agreement in principle with holders of more than 70% of its bonds on the terms of a recapitalization transaction that will reduce the company’s debt by up to $1.1 billion. It also will provide financial flexibility as it continues its ongoing transformation.

News Time to Enter ‘The Orlando Experience’ Sweepstakes

A week-long vacation in Florida is the grand prize in the Auto Value and Bumper to Bumper ‘The Orlando Experience’ sweepstakes, which runs through November 2018.

News Cooper Will Raise Consumer Tire Prices on Oct. 1

Cooper Tire & Rubber Co. will increase passenger and light truck tire prices beginning Oct. 1, 2018. The magnitude of the increase is "up to 4%."

Article Are You an S Corp or C Corp?

A small business is much, much, much better off as an S corp for many reasons. For starters, if your store or stores made less than $50,000 in profit last year as a C corp, your tax rate is about to go up. 

TBC Brands has added a new product line for the sprinter and commercial van segment, the Wild Spirit HST-C.
News TBC Brands Releases Wild Spirit HST-C TIre

The new Wild Spirit HST-C tire from TBC Brands LLC is designed for the sprinter and commercial van segment.

The new Autel TS608, a TPMS and service tool combination, is one of the tools featured in Autel's "Complete TPMS Solution" video. 
Product Autel Releases ‘Complete TPMS Solution’ Video

Autel Intelligent Technology Corp. Ltd.’s latest video, “Complete TPMS Solution” highlights the time-saving features of its next-generation tire pressure monitoring system sensors and service tools.  

(from left) Chief Pilot Jerry Hissem, Shaesta Waiz (center) and Goodyear CEO Rich Kramer celebrate the ceremonial christening of Wingfoot Three on August 30.
News Record-Breaking Pilot Shaesta Waiz Christens Goodyear’s Newest Blimp

Goodyear Tire & Rubber Co.’s newest blimp, Wingfoot Three, has been christened by Shaesta Waiz, the youngest woman to fly solo around the world in a single-engine aircraft.

Pirelli honored nine of its more than 10,000 global suppliers for supporting the ocmpany's efforts towards a sustainable purchasing strategy.
News Pirelli Honors 9 Global Suppliers

Pirelli & Cie SpA recognized the sustainability, innovation and quality of service displayed by nine suppliers from its global supply chain of more than 10,000 businesses at its 2018 Pirelli Supplier Awards.

News 3 Big O Tires Franchisees Win Top Award

There are nearly 450 Big O Tires LLC stores in 23 states, but franchisees in Colorado, Utah and California earned the company's top award for their performance in 2017.

The Ziex ZE001 A/S tire will be fitted on the redesigned 2019 Subaru Forester.
News Redesigned 2019 Subaru Forester Will Roll on Falken Tires

Falken Tire Corp. continues to focus on original equipment fitments, and has secured another one. Subaru of America Inc. has selected the Falken Ziex ZE001 All-Season tire as its pick for the redesigned 2019 Forester.  

Kumho says the new Ecsta PA51 covers about 95% of top 50 UHP all-season fitments in the market and is tailored to all drivers who want the handling of a UHP tire without compromising all-season capability.
Product Kumho Has a New All-Season UHP Tire

Kumho Tire USA Inc.’s new ultra-high performance all-season tire, the Ecsta PA51, is available in 43 sizes, with a dozen more sizes to be added later this year.

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!