Michelin's net income remained positive through the health crisis of 2020 but it was almost divided by three, from 1.730 billion in 2019 to 625 million euros in 2020, the French tire manufacturer announced on Monday.
"
In a context of a global pandemic
", the group achieved sales of 20 billion euros, down 15%, Michelin said in a press release.
The operating profit from current activities (known as the operating profit from the segments) amounted to 1,878 million euros, down 37%.
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The Covid-19 crisis has reduced volumes by 14%, explains Michelin.
The tire manufacturer, however, reduced its general expenses by 240 million euros, and is pleased that the “
price-mix
” effect (+ 1.2%), linked to the increase in unit prices and the sale of higher products. range, in a context of falling commodity prices, enabled it to limit breakage.
The group has also reduced its investments by around 30%.
Michelin will propose a dividend of 2.30 euros per share for the year 2020.
"
In this uncertain context, the group is continuing its efforts to improve competitiveness
", indicated its president Florent Ménégaux, "
and continues to orient its production towards high-end and specialty tires, while accelerating its development in high-tech materials and service and solution offers
”.
The tire manufacturer announced in early January a "
competitiveness plan
" which plans to cut up to 2,300 jobs in France over three years, without forced departures.
The Clermont-Ferrand group expects to return to the 2019 level of activity from the second half of 2022. In 2021, "
in a context which is still very uncertain
", an annual operating profit from the sectors will be over 2.5 billion euros. euros at constant parities.
It forecasts an increase of between 6 and 10% in the Passenger and light truck market, + 4 to + 8% in the Heavy Truck markets, and + 8 to + 12% in specialty activities.
As of December 31, 2020, the group had more than two billion euros in free cash flow, an increase of 862 million compared to the same period in 2019.