PARIS — Michelin Group rebounded strongly from a troubled 2020 to report solid double-digit gains in fiscal 2021 earnings and revenue, although both fell slightly short of the pre-pandemic fiscal 2019 results
Operating income for the year ended Dec. 31 rose 57.9% to $3.51 billion on 16.2% higher revenue of $28.1 billion, yielding an improved operating ratio of 12.5% (versus 9.2% in 2020). Net income rose nearly tripled over 2020 to $2.18 billion.
Michelin attributed the sales gain to a strong rebound (11.8%) in tire volumes, as demand turned sharply upward in every tire market. Replacement tire sales were also lifted by dealer inventory rebuilding throughout the year, the company said.
From a business unit perspective, passenger/light truck tire business was up 18.8% over 2020, truck tire revenue was up 16% and the specialty business reported an 11.4% gain.
In addition, the company cited gains in the price effect (4.5% or $1.1 billion) the price effect and product/mix (1.6% or $390 million), which takes into account the "sustained success" of Michelin's premium brand strategy, Menegaux said, particularly in the larger rim-diameter (18 inches and larger) segments.
The collapse in automotive output caused by the semiconductor shortage fed through to a very favorable sales mix, with a greater percentage of replacement sales in the automotive segment.
In 2021, Michelin delivered 'very good results in extremely difficult conditions, while maintaining the priority to protect its employees," Managing Chairman Florent Menegaux said, adding that the results "one again demonstrated (Michelin's) strength and resilience."
Looking ahead, Michelin is projecting modest (6% to 7%) improvement in operating income as the company and industry deals with a "still highly unsettled environment." Menegaux said.
Michelin is projecting market expansions of up to 4% in passenger and light truck tires, 1% to 5% in truck tire markets and 6% to 10% in specialty markets (OTR, farm, aircraft, 2-wheeler, etc.). The company did not issue a sales revenue forecast for 2022.
