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Financial Information for the Year Ended December 31, 2011

Compagnie Générale des Établissements Michelin

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.

Investor Relations Media Relations Individual shareholders

Valérie Magloire
+33 (0) 1 78 76 45 37
+33 (0) 6 76 21 88 12 (cell)
valerie.magloire@fr.michelin.com

Matthieu Dewavrin
+33 (0) 4 73 32 18 02
+33 (0) 71 14 17 05 (cell)
matthieu.dewavrin@fr.michelin.com

Corinne Meutey
+33 (0) 1 78 76 45 27
+33 (0) 6 08 00 13 85 (cell)
corinne.meutey@fr.michelin.com
Jacques Engasser
+33 (0) 4 73 98 59 08
jacques.engasser@fr.michelin.com

DISCLAIMER

This press release is not an offer to purchase or a solicitation to recommend the purchase of Michelin shares. To obtain more detailed information on Michelin, please consult the documents filed in France with Autorité des Marchés Financiers, which are also available from the www.michelin.com website.

This press release may contain a number of forward-looking statements. Although the Company believes that these statements are based on reasonable assumptions as at the time of publishing this document, they are by nature subject to risks and contingencies liable to translate into a difference between actual data and the forecasts made or inferred by these statements.


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