PARIS (Feb. 12, 2013) — Group Michelin reported a 24.6-percent jump in operating income last year, to $3.11 billion, on 3.6-percent higher sales revenue of $27.6 billion.
Michelin attributed the improved earnings to the positive effects of higher pricing and a better product mix, which more than offset the negative effects of higher raw materials costs and lower sales volumes. The improvement yielded an operating income/sales ratio of 11.3 percent, a full two percentage points better than in fiscal 2011.
Net income rose 7.5 percent to $2.02 billion, or 7.3 percent of sales, Michelin said.
Improved pricing contributed nearly $1.4 billion to the firm's revenue increase, offsetting the negative effects of a 6.4-percent drop in sales volume, Michelin said, which reflected weak demand in many markets, particularly in Europe.
Revenue in North America, by contrast, rose 13.7 percent last year to $9.39 billion, Michelin reported, on the strength of OE sales and aftermarket penetration in the premium segments.
Globally, Michelin reported revenue by its consumer businesses—passenger car and light truck tires and related distribution—grew 2.9 percent to $14.3 billion despite a 5.5-percent drop in sales volume on the strength of the Michelin brand. Segment operating income was essentially unchanged at $1.31 billion.
The truck tire and related distribution segment posted sales of $8.66 billion, up 0.3 percent over 2011 despite 10.8-percent lower sales volumes. Operating income nearly doubled to $571 million.
The company's specialty tires segment—OTR, farm, aviation, two-wheeler tires—reported 13-percent better sales of $4.68 billion and 36.3-percent higher operating income of $1.22 billion.