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Michelin Earnings Drop 28%
Michelin & Cie.'s net profit last year fell to €1.1 billion from nearly €1.6 billion in 2012 as revenue declined 6% to €20.2 billion.
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Michelin & Cie.'s net profit last year fell to €1.1 billion from nearly €1.6 billion in 2012 as revenue declined 6% to €20.2 billion.
The tiremaker blames strong competitive pricing pressure and €260 million in restructuring costs. Also contributing to the shrinkage was a stronger euro and slumping demand for tires used by construction and other specialty vehicles.
Michelin's operating income last year was €2.2 billion, up 2%. The company notes that it reduced debt in 2013 and benefited from a €69 million reduction in raw materials cost.
Michelin expects the global tire market and its own sales each to grow 3% in 2014. The company targets capital expenditures of €2 billion and aims for a return on capital employed of 11%.
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