Michelin posted a 37% increase in profit for the first half of the year

Article by Christian Andrei, on July 31, 2012

For the first half of the year, Michelin posted a 37% increase in profit as price hikes have aided in offsetting the decline in Europe’s economy and auto industry. Michelin also announced that it anticipates a full-year increase in operating income. In Friday’s statement, Michelin said that net income climbed to 915 million euros ($1.13 billion) from 667 million euros during for the same period in the previous year.

Revenue increased by 5.9% to 10.71 billion euros even with a drop in volumes, driven by price increases imposed last year. Michelin, which has its headquarters in Clermont-Ferrand, central France, will be adding about one new plant every year for its expansion plans in markets like China.

Michelin, which is closely followed by Bridgestone at No. 2, is targeting a 2.5 billion-euro operating income target for 2015. Michelin released a statement to announce that sales volumes decreased by 8.3% and are predicted to fall by 3% to 5% for the full year. However, this decline will be offset by better raw materials costs and by a positive currency effect.

The operating income of Michelin for the first half of the year increased by 36% to 1.32 billion euros (before one-time gains and losses), making up about 12.3% of sales, from 971 million, or a 9.6% margin. For the first half, Michelin recorded 7 million euros in free cash flow. The company also reiterated its goal to achieve a positive figure for the full year. Michelin said that the operating income will indicate a “clear increase" for full-year 2012, restating a previous forecast. The net debt surged to 2.18 billion euros from having posted only 1.81 billion at the end of December.

Topics: michelin, profit

If you liked the article, share on:


Login or Create new account to add a comment!


Mitsubishi is now officially part of the Renault-Nissan alliance after Nissan took over the Japanese car company recently. We know a lot has been happening in the car industry, but...
by - October 24, 2016
Driving the newest 2017 BMW 5-Series (G30), Clive Owen (Closer, Children of Men) returns to his role as “The Driver”. In this latest installment, what initially starts as a simple...
by - October 24, 2016
Many had wished that a Lamborghini Huracán Superleggera would somehow make a surprise debut at the recently held Paris Motor Show. Sadly, not a single Lamborghini appeared anywhere in sight....
by - October 24, 2016
Aston Martin and Red Bull Racing teamed up for the first time in creating what looks like one of the most ferocious beasts in history. The British car manufacturer has...
by - October 24, 2016
German premium carmaker Audi is reportedly planning to buy back around 25,000 Audi Q7 SUVs powered by its 3.0-liter V6 TDI engine in the United States. The buyback should compensate...
by - October 24, 2016