Clermont-Ferrand, France – Michelin’s operating profit before non-recurring items rose to €2,577 million or 12.2 percent of sales compared to €2,170 in 2014, the French group announced on 16 Feb.
The figure reflected a €231-million increase from volume growth and the negative impact of €687 million for actively managing the price mix.
The latter effect was, however, mostly offset by a €594-million gain from lower raw materials costs, Michelin said.
Indeed, the company reported a “significant increase” in operating margin due to “a very good second half; particularly for passenger car and light truck tires.”
“The group was able to continue leveraging the favourable effect of currency movements, adding €437 million in a particularly competitive marketplace shaped by overcapacity in Asia and falling raw materials prices,” the French tire-maker announced.
“In 2015, we successfully drove profitable, over-market growth in tonnages sold and gained new market share in all our businesses,” said Jean-Dominique Senard, chief executive officer.
As for 2016, Senard said, Michelin would continue its focus in four areas – enhancing customer service, streamlining operating procedures, deploying digital solutions and increasing the “empowerment” of teams.
In 2016, said Michelin, demand for passenger car, light truck and truck tires is expected to continue rising in the mature markets and remain in-line with 2015 trends in the new markets.
Demand for speciality tires is expected to continue to be affected by mining company inventory drawdowns, it added.