Tires, Products and Travel services
- United Arab Emirates
- Burkina Faso
- Central African Republic
- Ivory Coast
- Saoudi Arabia
- South Africa
- Sri Lanka
- Bosna i Hercegovina
- Crna Gora
- United Kingdom
- €1,154 million in free cash flow, resulting from:
- The Group’s ability to structurally generate cash.
- The value creation target assigned to every unit.
- Volumes stable, as expected.
- Operating income before non-recurring items structurally high at €2,234 million, up €41 million at constant scope of consolidation and exchange rates and representing an operating margin before non-recurring items of 11.0% of net sales:
- Margin discipline thanks to the positive €69 million impact of raw materials prices.
- An effective Competitiveness Plan.
- A better balance among the contributions from each business, especially in the case of Truck tires.
- Net Debt lowered to €142 million.
Recommended dividend of €2.50 a share, submitted to shareholder approval at the Annual Meeting on May 16, 2014 and representing an increase in payout to 35% of net income before non-recurring items.
Jean-Dominique Senard, Chief Executive Officer, said: “Michelin’s good results in 2013, achieved in an uneven market environment, confirm our objective of delivering a business performance in line with our 2015 ambition*.”
- Outlook for 2014
During the year, tire demand is expected to continue expanding quickly in the new markets, while moving back in line with economic activity in the mature regions.
In this environment, Michelin is committed to increasing its sales volumes by around 3% over the year, in line with growth in the global tire market. This performance will be driven by the successful launch of products like the MICHELIN Premier All Season or the MICHELIN X Multi range, the ongoing deployment of the premium strategy, the structural robustness of the Specialty businesses, the MICHELIN brand’s stronger positions and the ramp-up of the new production plants.
Michelin is maintaining its margin discipline, which preserves a positive balance between pricing policy and raw materials costs. The benefits of the Competitiveness Plan should be strengthened by the growth in net sales.
As a result, Michelin's objective for 2014 is to achieve a more than 11% ROCE and generate structural free cash flow exceeding €500 million, all while maintaining its capital expenditure program at around €2 billion.
*Based on average 2012 exchange rates.
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Last update: February 11, 2014
|(IN € MILLIONS)||2013||2012|
|OPERATING INCOME BEFORE NON-RECURRING ITEMS||2,234||2,423|
|OPERATING MARGIN BEFORE NON-RECURRING ITEMS||11.0%||11.3 %|
|PASSENGER CAR AND LIGHT TRUCK TIRES AND RELATED DISTRIBUTION||10.2%||9.3 %|
|TRUCK TIRES AND RELATED DISTRIBUTION||7.8%||6.6 %|
|SPECIALTY BUSINESSES||20.6%||26.0 %|
|OPERATING INCOME AFTER NON-RECURRING ITEMS||1,974||2,469|
|EMPLOYEE BENEFIT OBLIGATIONS||3,895||4,679|
|FREE CASH FLOW1||1,154||1,075|
|EMPLOYEES ON PAYROLL2||111,200||113,400|
1Cash flow from operating activities less cash flow used in investing activities