ERJ staff report (DS)
Paris -- Despite huge turmoil in the tyre industry, Michelin finished the year solidly in the black and with sales down by only 10 percent for the 12 months to December 2009. It managed to improve its operating margins.
Average selling prices improved, as sales fell by 9.8 percent to euro 14 807 million (14.8 billion) compared with euro 16.4 billion a year ago. However, unit volumes fell by 14.8 percen.
Michelin said it was helped by declines in raw material costs and fierce efforts to cut costs, which resulted in an improved break-even point.
The company reported net income of €104 million, despite a high €412 million in restructuring costs.
â€œIn an environment shaped by a historic decline in tire demand, especially in mature
economies, Michelin was able to respond quickly and more agilely than ever,â€ said
Michel Rollier, Managing General Partner. â€œThanks to the dedicated commitment of
our teams and tight management, Michelin has delivered robust performance and
improved its major financial metrics, the foundations of its future growth.
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Press release from Michelin