Michelin operating income, margin stable as 1H sales increase

摘要

Michelin has released its first half financial results, showing stable operating income of ?971 million for a 9.6 per cent operating margin, with net sales up 21 per cent. The Group says the figures are in line with its corporate "road map" revising its full year sales volumes objectives upwards - after 12.6 per cent market growth in the first half - and reconfirming its profitability estimates. The Group suggests market growth should accelerate in line with long-term trends by the end of the year, targeting an 8 per cent growth in full-year sales volumes. Michelin says it is "diligently pursuing" a pricing policy of passing on increased raw material prices, which have mitigated general sales growth in worldwide tyre markets. Michelin expects to offset estimated additional full-year costs of around ?1,800 million. The impact of raw material prices on working capital requirement, which Michelin puts at "approximately ?400-500 million for the full year" alongside the Group's investment plans suggest free cash flow will be "temporarily negative in 2011" according to the Group's statement.