Michelin Tire Company Gets Big Advantages of Commercial Vehicles
The Michelin group received last year a net profit of 1,462 million Euros, 39.3% from 1.402 million with which closed in 2010, reported the company, which has factories in Armanda de Duero (Burgos) and Valladolid.
The turnover stood at 20.719 million Euros, an increase of 15.8% compared to 17.891 million in 2010. The profit margin on turnover is 7.1%.
For the company these results fully confirm the strategic direction developed by the tire manufacturer group with 70 production plants located throughout the world, four of them in Spain.
The “cash flow” (profits plus depreciation) free Michelin group at the end of last year totaled a negative € 19 million due to the acceleration of the investment plan and the impact of rising material prices as raw rubber, silica and another series of primary components of tires.
Net debt stood at EUR 1.814 million, 1.629 million before 2010, which represented a record 22% on equity, compared to 20% assumed in the previous year.
By business, in providing passenger and commercial vehicles, the first mounting globally grew by 4%, the same percentage as in the replacement, a notable increase of 10% of the first supply in the markets of North America and 7 % in Europe.
In the division of trucks or commercial vehicles, the evolution of the first worldwide supply was 18%, while replacement limited the increase to 5%
the breakdown of the total turnover of 20.719 million Euros, 10,780 billion is attributed to the area of passenger cars and commercial trucks 6.718 million, 3.221 million and special activities (agriculture, public works and motorcycle).
The presentation of results, held in Paris, Michel Roller, has confirmed his retirement from limited partner as manager – the highest executive body of the company – to be replaced by Jean-Dominique Seward, who shared duties, and now lead Michelin alone.
The future prospects of Michelin focus on a growth plan of 25% in the period 2011-2015, and a program to improve industrial competitiveness, with a cost savings of 1,000 million Euros over five years .
Makers opt for Michelin tire market stability, according to the outlook for auto sales in more mature markets.
