Mexican Media Brands
Michelin Hikes First-Half Operating Profits 11%
Michelin & Cie. reports that a cost-cutting program in Europe helped the tiremaker increase its operating income 11% to €1.4 billion ($1.6 billion) in January-June.
#economics
Share
Michelin & Cie. reports that a cost-cutting program in Europe helped the tiremaker increase its operating income 11% to €1.4 billion ($1.6 billion) in January-June. Net income rose 9% to €769 million ($846 million).
Demand for Michelin's original-equipment and replacement tires for cars and light trucks in the first half gained 2% and 3%, respectively. Sales of the company's commercial truck tires were flat to manufacturers and down 2% in the replacement market.
First-half revenue dropped 2%, to €10.3 billion ($11.3 billion). But cheaper raw materials and a richer sales mix boosted operating income by €115 million ($126 million).
Michelin says it expects to reduce costs by €1.2 billion ($1.3 billion) by the end of this year compared with 2012. The company—which predicts a “buoyant” tire market in China will offset slower growth in Europe and North America—reiterates previous guidance for improved operating earnings and at least €800 million in free cash flow in 2016.
RELATED CONTENT
-
On Lincoln-Shinola, Euro EV Sales, Engineered Carbon, and more
On a Lincoln-Shinola concept, Euro EV sales, engineered carbon for fuel cells, a thermal sensor for ADAS, battery analytics, and measuring vehicle performance in use with big data
-
On Quantum Navigation, EVs, Auto Industry Sales and more
Sandia’s quantum navi, three things about EVs, transporting iron ore in an EV during the winter, going underwater in an EV (OK, it is a sub), state of the UK auto industry (sad), why the Big Three likes Big Vehicles, and the future of logistics.
-
Ford’s $42 Billion Cash Cow
F-Series pickups generate about 30% of the carmaker’s revenue. The tally is about twice as much as what McDonald’s pulls in.