Michelin Germany: Record Investments but Reduction in Profits

In the 1999 business year Michelin Reifenwerke KGaA (workforce: 6,747) increased its turnover by 3.2 p.c.

or approximately 100 million DM to 3.215 billion DM (1998: 3.115 billion DM).

The largest part of total turnover was generated in the German market, where it rose by another 6.3 p.c.

compared with the previous year to approximately 60 p.c. of total turnover.

As a member of the international manufacturing combine, however, the German factory also supplies the distribution organisations of its European sister. In this Michelin Germany also showed a slight improvement. Total tyre production – measured in tonnes – rose by 2.

6 p.c. Sales were up by 4.

6 p.c. Michelin sold 8.

8 p.c. more light truck and nine per cent more truck tyres in 1999.

In winter car tyres in particular the company recorded significant sales growth over the previous year, partly due to the launch of the new products Michelin Alpin and Michelin Pilot Alpin. “Our target for 1999 was the modernisation and enlargement of production capacity to improve our competitiveness”, said Dr. Klaus Neb as spokesman for the management.

In the course of last year the company invested a total of about 128 million DM in its five German factories and plans to make another significant investment this year in modernising and increasing capacity, especially in the truck tyre factories. Neb is convinced that these high investments will pay off. “Although economic development will differ from country to country, we expect further growth in Europe for the year 2000.