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

Article by Christian A., 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.

If you liked the article, share on:

Topics: michelin, profit

Comments

Recommended

Earlier in November at the 2017 SEMA Show in Vegas is when Hennessey unwrapped the Venom F5 to all of us. But it was actually first introduced as a concept...
by - November 22, 2017
Mercedes-Benz just made an announcement that the 2018 E Class Cabriolet has finally landed in the United States. If you had not known, the E Class will be positioned in...
by - November 22, 2017
After a somewhat successful fray into the automotive market in China, the resurrected German automobile brand Borgward is finally heading to Europe, bringing along with it the Borgward BX7 sports...
by - November 22, 2017
Automotive industry veteran Bob Lutz has once again spoken out against Tesla. Known as one of Tesla Motors’ greatest skeptics, Lutz had stated two years ago that the Silicon Valley...
by - November 22, 2017
Dubai is one of the few countries where expensive cars are the norm, many of which are specially modified as well. And this just in: Bentley has debuted the new...
by - November 21, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries