Michelin is reporting operating income for 2011 of EUR1.95bn (US$2.6bn) or 9.4% of net sales, with a 39% increase in net income.
The French tyre manufacturer noted it was looking to drive “at least” 25% growth and generate positive free cash flow during the 2011-2015 period and has raised its 2015 operating income target to EUR2.5bn.
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“In deploying its strategy, Michelin is capitalising on a number of competitive advantages, including forefront positions both in the premium tyre segment and in all of its speciality businesses, as well a balanced global footprint that will be further strengthened in 2012 with the start-up of the new plants in Brazil and China,” noted a Michelin statement.
“As part of this process, Michelin has introduced a new programme to improve the competitiveness of its manufacturing operations and services by around EUR1bn in a five-year period. In 2012, Michelin aims to hold volumes steady as global tyre markets experience varying degrees of growth, in an environment that will remain favourable in the new markets but be less buoyant in Europe.”
With the growth in operating income and, given capital expenditure of around EUR1.9bn for the year, Michelin estimates the generation of free cash flow should be in line with the Group’s 2015 objectives.
