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2013 Results

pdf file Analyst / Investor Conference Invitation

View the conference View the videocast of the conference held on February 11, 2014



2013: Very strong free cash flow, at €1,154 million
Fourth straight year of value creation, with an ROCE of 11.9%
High operating income before non-recurring items, at €2,234 million, up €41 million at constant scope of consolidation and exchange rates
2014: A milestone in line with our 2015 objectives*


  • €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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  • 2013 Annual results Guide (5MB) Download
  • 2013 Annual results presentation (2MB) Download
  • 2013 Highlights (2MB) Download
  • Analyst / Investor Conference Invitation (137kB) Download
  • Press release (274kB) Download

Year-over-year-comparison

Last update: February 11, 2014

(IN € MILLIONS) 2013 2012
NET SALES 20,247 21,474
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
NET INCOME 1,127 1,571
CAPITAL EXPENDITURE 1,980 1,996
NET DEBT 142 1,053
GEARING 2% 12 %
EMPLOYEE BENEFIT OBLIGATIONS 3,895 4,679
FREE CASH FLOW1 1,154 1,075
ROCE 11.9% 12.8 %
EMPLOYEES ON PAYROLL2 111,200 113,400

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

Highlights

Highlights
Check out the 2013 Highlights.

Markets

Markets
Compare tire market growth figures for the Passenger Car and Light Truck and Heavy Truck markets.
Markets at end of March
Last update: March 14th, 2014