First-half 2021: The Michelin Group reports sales of €11.2 billion – up 19.6% –
and segment operating income of €1.4 billion, representing 12.7% of sales.


The Group raises its full-year guidance.


  • In an environment shaped by an enduring health crisis, the robust market recovery was tempered by major disruptions in the global supply chain.
  • In this context, the commitment of Michelin teams helped to deliver a 19.6% increase in sales and €1,421 million in segment operating income for the period, with:
    • a 22.8% increase in tire volumes, adding €1,195 million to SOI[1] and reflecting market share gains in every segment, especially 18-inch and larger tires, and a 4.6% increase in sales of non-tire activities;
    • a €126 million increase from the positive net price-mix/raw materials effect. The 1.4% gain from responsive pricing management helped to offset the rise in raw material procurement costs. In addition, the mix effect added 1% to growth, thanks to the steady enhancement in the product mix and a favorable market mix;
    • an unfavorable currency effect, stemming primarily from the US dollar’s weakness against the euro, which reduced SOI by €150 million.
  • Free cash flow before acquisitions totaled a positive €361 million, lifted by the growth in EBITDA and the still lower than normal inventory levels.
  • Debt remained unchanged for the period while equity increased, driving an improvement in the Group's gearing to 26.7%.



[1]SOI: Segment Operating Income


As markets continued to recover, the Michelin Group had a very good first half. These solid results should not overshadow the persistent impact of the health crisis, which is causing major disruptions, particularly in the supply chain. I would therefore like to personally thank the Michelin teams for their unwavering commitment to enabling our Group to sustain its leadership in our tire businesses and to continue deploying our sustainable growth strategy.
Florent Menegaux, Chief Executive Officer, Michelin Group

Outlook for 2021

After recovering sharply in the first half, global demand will not benefit from as favorable a base in the second half of the year, when it will likely continue to be impacted by global supply chain disruptions. Passenger car and Light truck tire markets are expected to expand by between 8% and 10% over the year and Truck tire markets by between 6% and 8%. The Specialty markets should deliver 10% to 12% growth over the year.

Barring any new systemic effect from Covid-19[1], Michelin plans to strengthen its positions in the prevailing market environment. Consequently, the Group is raising its objectives for the full year, targeting segment operating income in excess of €2.8 billion at constant exchange rates (versus > €2.5 billion as previously announced) and structural free cash flow[2] of more than €1 billion (versus around €1 billion).



[1] Deeper supply chain disruptions or tighter restrictions on freedom of movement that would result in a significant drop in the tire markets.

[2] Structural free cash flow corresponds to free cash flow before acquisitions, adjusted for the impact of changes in raw material prices on trade payables, trade receivables and inventories.



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