12-02-2018
Financial information for the year ended december 31, 2017
2017: Another year of progress, in line with the 2020 objectives Strong structural free cash flow, at €1.5 billion for the year €2,742 million in operating income from recurring activities, up €145 million at constant exchange rates Net income higher year on year, at €1,693 million
2018: Sustained progress, on track to achieve the ambitions set for 2020
Strong structural free cash flow, at €1.5 billion for the year.
Operating income from recurring activities of €2,742 million, or 12.5% of net sales, up €145 million at constant exchange rates.
Determined Group strategy to offset the more than €700 million increase in raw materials costs, resulting in a neutral impact versus raw materials headwind on the non-indexed businesses.
Sustained market share gains in 18-inch and larger tires (MICHELIN brand sales up 19% in a segment up 13%), with a price positioning in line with the brand reputation.
Competitiveness plan gains exceeded inflation by €36 million, in line with objectives.
Highly competitive markets, especially in Europe, which are weighing on the dealership operations.
Specialty businesses: operating income from recurring activities up more than 30% and strong growth across every division.
Proposed dividend of €3.55 per share, representing a payout of 36% of consolidated net income excluding non-recurring items in line with the Group's commitment to shareholders, to be submitted to shareholders at the Annual Meeting on May 18, 2018.
Outlook
In 2018, the Passenger car/Light truck and Truck tire markets are expected to experience modest growth over the year, while the mining tire, agricultural original equipment and earthmover original equipment markets should remain buoyant.
Given the market conditions, price management will make it possible to generate a net positive effect from changes in the price mix and raw materials costs, assuming an estimated €50-€100 million increase in raw materials prices. Based on January 2018 exchange rates, the currency effect would reduce full-year operating income from recurring activities by around €300 million.
In this environment, Michelin's objectives for 2018 are volume growth in line with global market trends, operating income from recurring activities exceeding the 2017 figure at constant exchange rates, and structural free cash flow of more than €1.1 billion.
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