Groupe Michelin’s recent 2015 financial report shows the company has increased its passenger car and light truck demand in the North America, European and Asian markets, while the recession in Brazil and Argentina continue to negatively affect Michelin’s demand in South America.
‘‘In 2015, we successfully drove profitable, over-market growth in tonnages sold and gained new market share in all our businesses, thanks to the quality of the Group’s offering. Our growth and margins have both improved significantly,” said Jean-Dominique Senard, CEO of Groupe Michelin.
Michelin’s 2015 net sales of €21,199 million were up 8.4% from 2014’s €19,553 million. Net income was also up to €1,163 million from €1,031 million in 2014.
Passenger car and light truck tires were up 14.6% and pulled in €12,028 million in net sales, up from last year’s €10,498, while medium truck tire net sales increased to €6,229 million from €6,082 million.
Michelin’s total passenger car and light truck tire OE demand was up 2%, while replacement was up 3%.
The North American market remained buoyant, with OE demand up 4%, backing the strong vehicle demand, low fuel prices and favorable economic conditions, Michelin said. An increase of 1% in replacement demand comes from the strong growth in Mexico, which offset the nearly flat demand in the U.S. and Canada.
Overall medium truck tire demand is down 7% in OE and 1% in replacement due to the decrease in demand in the Asia and South American markets. In all other markets, OE demand is up – with a 7% increase in North America. Additionally, replacement demand is up 4% in North America.
In 2016, Michelin said it expects passenger car, light truck and truck tire demand to continue growing.
“Looking forward to 2016 and beyond, we have to continue our efforts in four areas – enhancing customer service, streamlining operating procedures, deploying digital solutions and increasing the empowerment of our teams. With our strengthened fundamentals, the Group is on the right track,” Senard said.
