Michelin reports 2,577 million euros of operating income

Compagnie Generale Des Etablissements Michelin has reported a 2015 operating income of 2,577 million euros, up 407 million euros or 12.2 per cent compared with 2014. During the same period Michelin reported a 3.2 per cent increase in tonnages, outpacing the market in all business segments. Growth was said to have been especially strong in passenger car and light truck tyres (up 6.7 per cent)

With this in mind, the company has issued a dividend of 2.85 euros per share, reflecting the firm’s confidence, a payout ratio of 37 per cent, to be submitted to shareholders at the annual meeting on 13 May 2016.

Jean-Dominique Senard, Michelin chief executive officer, said: ‘‘In 2015, we successfully drove profitable, over-market growth in tonnages sold and gained new market share in all our businesses, thanks to the quality of the Group’s offering. Our growth and margins have both improved significantly. Looking forward to 2016 and beyond, we have to continue our efforts in four areas – enhancing customer service, streamlining operating procedures, deploying digital solutions and increasing the empowerment of our teams. With our strengthened fundamentals, the Group is on the right track.”

In 2016, demand for Passenger car, Light truck and Truck tyres is expected to continue rising in the mature markets and remain in line with 2015 trends in the new markets. Demand for Specialty tires is expected to continue to be affected by mining company inventory drawdowns.

For 2016-2020, the Group set ambitious targets in terms of operating margins before non-recurring items, between 11 per cent and 15 per cent in the Passenger car and Light truck tire segment, 9 per cent and 13 per cent in the Truck tyre segment and 17 per cent and 24 per cent in the Specialty segment. The latest figures suggest the firm is well on its way.