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Jul 29
Segment operating income of 13.2% of sales in the first half of 2024. Strong free cash flow generation. Full-year guidance maintained.
In tire markets distorted by high inflows of budget tires, Group’s value-driven approach generated a strong increase in mix
Segment operating income increasing to 13.2 % of sales from 12.1 % in the first half of 2023, fueled by mix improvements and lower operating costs
Free cash flow before acquisitions of €669 million, driven by disciplined business management
Full-year guidance maintained
2024 guidance maintained, with segment operating income above €3.5 billion at constant exchange rates and free cash flow before acquisitions of more than €1.5 billion.
Florent Menegaux, CEO, said: “In an economic environment that remains particularly unstable, Michelin achieved a very solid first half. These results enable us to maintain our guidance for 2024. I would like to warmly thank our teams for their ability to adapt and for their commitment. I am convinced that our value-based approach, which positions us on very high value-added activities and the most accretive markets, is the right one. By pursuing its environmental and technological transformations and by placing people at the heart of all its decisions, Michelin is giving itself every advantage to successfully implement its “Michelin in Motion 2030” strategy.”
Key figures(1)
(IN € MILLIONS) | First-half 2024 | First-half 2023 |
SALES | 13,481 | 14,079 |
SEGMENT OPERATING INCOME | 1,782 | 1,704 |
SEGMENT OPERATING MARGIN | 13.2% | 12.1% |
AUTOMOTIVE(2) | 13.4% | 12.3% |
ROAD TRANSPORTATION(2) | 9.2% | 5.0% |
SPECIALTY BUSINESSES(2) | 16.8% | 18.3% |
OTHER OPERATING INCOME AND EXPENSES | (211) | (90) |
OPERATING INCOME | 1,571 | 1,614 |
NET INCOME | 1,163 | 1,220 |
EARNINGS PER SHARE | 1.62 | 1.70 |
SEGMENT EBITDA | 2,756 | 2,643 |
CAPITAL EXPENDITURE | 805 | 772 |
NET DEBT | 4,260 | 4,626 |
GEARING | 23.9% | 26.6% |
NET DEFINED BENEFIT OBLIGATION(3) | 2,350 | 2,290 |
FREE CASH FLOW(4) | 659 | 770 |
FREE CASH FLOW BEFORE ACQUISITIONS | 669 | 922 |
EMPLOYEES ON PAYROLL(5) | 132,300 | 132,300 |
(1) The Supervisory Board reviewed the consolidated financial statements presented by the Managers at its meeting on July 23, 2024.
(2) and related distribution.
(3) See note 15 to the condensed interim consolidated financial statements.
(4) Free cash flow: net cash from operating activities less net cash used in investing activities, adjusted for net cash flows relating to cash management financial assets and borrowing collaterals.
(5) Data rounded to the nearest hundred. …
Source: Michelin
Tire and Rubber Association of Canada
5409 Eglinton Ave W, Suite 208
Etobicoke, ON M9C 5K6
Tel: (437) 880-8420
Email: [email protected]