• Reduced scheduled capital expenditures for 2020 by $550 million, or approximately 28% lower than spending in fiscal 2019;
• Reduced the dividend submitted to shareholder approval by $365 million, or roughly 48% from that proposed earlier;
• Suspended a share buyback program, except for the firm commitments outstanding for 2020;
• Took efforts to reduce overhead costs; and
• Initiated tracking of supply and demand on a weekly basis to keep inventory under control.
In addition, Michelin Managing Partners Florent Menegaux and Yves Chapot took 25% salary/benefits cuts for April and May and members of the company's executive committee reduced their remuneration by around 10% during the same period.
These reductions will be continued as long as Michelin employees are in partial activity due to the COVID-19 health crisis, the company added.
Michelin also stated it believes it has sources of financing in place to deal with the uncertainty surrounding the crisis, citing financial stress tests based on volumes declining by between 20% and 35% over the full year that show that the company has sufficient cash and cash equivalents, without drawing down its confirmed back-up lines of credit.