Financial Information for the Six Months Ended June 30, 2011

Compagnie Générale des Établissements Michelin

Michelin Announces Net Sales of €5,047 Million,
up 28% on First-Quarter 2010

  •  Historically high sales in first-quarter 2011, with volumes gaining 16.5% on the sustained rebound in demand
  •  MICHELIN brand positions strengthened, thanks to its excellent product plan
  •  Price-mix improved by 7.7%, primarily reflecting price increases to pass on the sharp, across-the-board run-up in raw materials costs

 2011 Guidance

In first-quarter 2011, the sharp growth in volumes which compares with a prior-year period when demand was still recovering in mature markets, was amplified by early buying ahead of rolling price increases.

Over the full year, Michelin aims to drive volume growth of at least 6.5%. This objective may be raised if end-customer sales volumes remain at current levels over the coming months.

At a time of rising raw materials costs, Michelin is pursuing its firm pricing policy. Together, the price increases announced or implemented to date are expected to offset nearly 80% of the estimated additional full-year costs of around €1,800 million.

Given the impact of these additional costs on working capital requirement and the faster deployment of capital expenditure programs, free cash flow is expected to be temporarily negative in 2011.

Michelin reaffirms its objective of reporting higher operating income in 2011.

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Valérie Magloire
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Matthieu Dewavrin
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Corinne Meutey
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Jacques Engasser
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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 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.