LADOUX, France (June 7, 2016) — Group Michelin expects to outperform the industry through 2020 by growing tire-related revenues 20 percent, doubling revenue from services and solutions and tripling revenue from “mobility-experience” related business, the company's top executive said this week.
Speaking at the firm's Investor Day June 6 at Michelin's sprawling research and development complex in Ladoux, CEO Jean-Dominique Senard Cited four initiatives Michelin will pursue to ensure its growth:
- Putting tire maker's customers at the heart of its business;
- Leveraging the digital revolution;
- Simplifying its structures and processes; and
- Empowering employees.
By adhering to these principles, Michelin expects its operating income to grow 16.5 ercent over the coming five years to nearly $3.5 billion, according to Marc Henry, CFO and executive vice president, Specialty Products Business Units.
To reach these goals, Michelin is expecting global market demand for passenger/light truck tires to grow 2.5 percent annually through 2020 to 1.69 billion units, and 1.5 percent for truck/bus tires to 200 million units, along with recoveries in the agricultural and OTR/mining sectors.