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CLERMONT-FERRAND (dpa-AFX) – The corona crisis has brought the French tire manufacturer Michelin (Michelin (Compagnie Gnrale d Etablissements Michelin SCPA)) a sharp drop in sales and profits. However, the company earned better than expected in ongoing business. For the current year, the management expects better business again, as Michelin announced on Monday evening in Clermont-Ferrand. The level from the year before the pandemic is likely to remain out of reach in 2021.
In the past year, Michelin’s sales slumped by 15 percent to 20.5 billion euros. The operating profit of the segments collapsed by almost 38 percent to almost 1.9 billion euros, but exceeded the average expectations of analysts. The bottom line was that at 625 million euros, only a third as much profit remained as in 2019.
For the new year, Michelin boss Florent Menegaux expects the demand for tires for cars and small trucks to increase by six to ten percent. The market for truck tires is likely to grow by four to eight percent and for special products by eight to twelve percent. Assuming stable exchange rates, he anticipates an operating profit for the segments of more than 2.5 billion euros in 2021.
The prerequisite, however, is that the supply chains are not interrupted as a result of the pandemic or that people’s freedom of movement is restricted. Michelin announced at the beginning of January that it would cut up to 2,300 jobs in France over the next three years.
The shareholders are to receive a dividend of EUR 2.30 per share. That is significantly more than experts expected. They had only expected 1.87 euros./stw/fba/he