2011 Results

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2011: A Year That Fully Validated Michelin's Strategic Vision
2012: Higher Operating Income Target and Positive Free Cash Flow in More Widely Varying Markets

  • Sales volumes up 6.7% thanks to a very strong first half.
  • Robust operating income of €1,945 million, or 9.4% of net sales, and a 39% increase in net income.
  • Sustained high margins in the Specialty businesses.
  • Higher raw materials costs effectively offset.
  • Free cash flow at breakeven, given the faster deployment of the capital expenditure plan and despite the impact of higher raw materials costs on working capital.
  • A solid balance sheet.
  • Proposed dividend of €2.10 per share, subject to approval at the Annual Shareholders Meeting of May 11, 2012.

      Outlook
      In deploying its strategy, Michelin is capitalizing on a number of unique competitive advantages, including forefront positions both in the premium tire segment and in all of its Specialty 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.

      As a result, Michelin confirms its ambition to drive at least 25% growth and generate positive free cash flow over the 2011-2015 period, and has raised its 2015 operating income target to €2.5 billion.

      As part of this process, Michelin has introduced a new program to improve the competitiveness of its manufacturing operations and services by around €1 billion over five years.

      In 2012, Michelin aims to hold volumes steady as global tire markets experience varying degrees of growth, in an environment that will remain favorable in the new markets but be less buoyant in Europe.

      Growth in operating income and, given capital expenditure of around €1.9 billion for the year, the generation of free cash flow should both be in line with the Group's 2015 objectives.


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Year-over-year-comparison

Last update: February 10, 2012

(IN € MILLIONS) 2011 2010
NET SALES 20,719 17,891
OPERATING INCOME BEFORE NON-RECURRING INCOME AND EXPENSES 1,945 1,695
OPERATING MARGIN BEFORE NON-RECURRING INCOME AND EXPENSES 9.4 % 9.5 %
PASSENGER CAR AND LIGHT TRUCK TIRES AND RELATED DISTRIBUTION 9.4 % 10.4 %
TRUCK TIRES AND RELATED DISTRIBUTION 3.5 % 4.4 %
SPECIALTY BUSINESSES 21.5 % 17.8 %
OPERATING INCOME AFTER NON-RECURRING INCOME AND EXPENSES 1,945 1,695
NET INCOME 1,462 1,049
CAPITAL EXPENDITURE 1,711 1,100
NET DEBT 1,814 1,629
GEARING 22 % 20 %
FREE CASH FLOW1 (19) 426
ROCE 10.9 % 10.5 %
EMPLOYEES ON PAYROLL2 115,000 111,100

1Cash flow from operating activities less cash flow used in investing activities
2At period-end

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Markets

Markets
Compare tire market growth figures for the Passenger Car and Light Truck and Heavy Truck markets.
Markets at end of April 2012
Last update: May 15th, 2012

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Facts & Figures

Facts & Figures
Check out the Q1 2012 Highlights.

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