Net sales

Analyst / Investor conference audiocast on April 22, 2015

Michelin reports first-quarter 2015 net sales of €5 billion,
with above-market unit sales growth of 1.5%

Unit sales up 1.5% versus high prior-period comparatives, despite narrower markets:

  • Above-market growth in Passenger car/Light truck tire sales,
  • Truck tire and Specialty business volumes in line with the markets.

Unfavorable change in price mix, in an environment shaped by persistently low raw materials prices, reflecting:

  • The impact of applying raw materials-based price indexation clauses,
  • The added effect of price cuts introduced during 2014 and in early 2015.

2015 guidance confirmed, with additional details

  • Lower raw materials prices are now expected to have a favorable impact of around €600 million over the year, the aim being to ensure that changes in price mix and raw materials prices have a net positive effect in 2015, with the second half offsetting the negative first-half effect,
  • The currency effect is now expected to add more than €350 million to operating income for the year,
  • Michelin confirms its objectives of growing unit sales in line with global trends in its markets, delivering an increase in operating income before non-recurring items beyond the currency effect, reporting a return on capital employed in excess of 11%, and generating structural free cash flow of approximately €700 million, with around €1.8 billion in capital expenditure.

Uses of cash

  • Michelin will pursue its policy of value-creating investment, focusing on the growing Passenger car/Light truck tire businesses, as well as on innovation, Truck fleet operator services, the digital strategy, raw materials and semi-finished products and customer service,
  • A €750 million share buyback program will be carried out over a period of 18 to 24 months.

Comparison over 2014


Net Sales (in € Millions) 1st Quarter 2015 1st Quarter 2014 % Change
Passenger Car and Light Truck Tires and Related Distribution 2,777 2,520 +10.2%
Truck Tires and Related Distribution 1,474 1,462 +0.8%
Speciality Businesses 1 771 775 -0.6%
Group Total 5,022 4,758 +5.6%

1 Earthmover, Agricultural, Two-Wheel and Aircraft tires; Michelin Travel Partner and Michelin Lifestyle Ltd.