ERJ staff report (DS)
Paris - Michelin has revised upwards its forecast out to 2015 and stepped up capital expenditure plans. The company said operating profit in 2015 will reach euro 2900 million, an increase from the previous forecast of euro 2500 million.
Michelin described 2013 as a year of transition but said that from 2014 the industry would return to the long-term trend line of four to five percent annually, with raw materials prices tracking a similar trend. The Group's objective is to increase sales in line with market growth.
Michelin aims to grow with fast-growing markets and segments. In particular it sees strong opportunities in car tyres in the 17-inch and above category and expects to expand capacity in that segment by nearly 70 percent between 2012 and 2015. The Group is going to step up its deployment in the new markets, which will account for nearly 60 percent of its new capacity investments in the same period.
In addition, to widen its technological leadership, Michelin is increasing its investments in materials, with capital expenditure of around â‚¬550 million a year through 2015.
Michelin will commit a total of between â‚¬1,600 million and â‚¬2,200 million a year over the 2012-2015 period, depending on the market outlook.
For 2015, Michelin aims to report normalised operating margins before non-recurring items of 10-12 percent in the Passenger car & Light truck segment, 7-9 percent in the Truck segment and 20-24 percent in the Specialty businesses, which are expected to grow more quickly than the rest of the Group.
This is an external link and should open in a new window. If the window does not appear, please check your pop-up blocking software. ERJ is not responsible for the content of external sites.
Press release from Michelin