Jul 30, 2008
Faced with a situation more difficult, Michelin is reviewing its prospects
Faced with a situation more difficult, Michelin is reviewing its prospects
Faced with declining markets more severe than expected in Europe and North America and the soaring prices of raw materials, Michelin has revised down its outlook for 2008 after a decline in its margin in the first half.
The group french tyre nevertheless wants to be confident about its ability to respond to changes in the bottom of an automobile sector more concerned with economies of consumption and the environment.
Michelin had to "adapt (its) forecast results for 2008 to reflect the" serious deterioration of the markets "in Europe and North America and the" considerable increase "of raw materials," said chief financial officer Jean - Dominique Senard.
The deterioration was sensitive to the markets for replacement tires in tourism-van and truck in Europe and North America, particularly in Europe in May and June in particular.
The outlook for the remainder of the year are now "lower" than expected: "objectively, on the few months ahead, we see no significant recovery of these markets," noted Mr. Senard.
Emerging economies, which account for 29% of sales volumes, however, should maintain "a relatively robust increase".
Michelin also suffered an increase "almost unprecedented" in raw material prices. The impact is now estimated at 750 million euros over the full year, against 600 million in the previous forecast.
In the end, the group table now for all of 2008 on an operating margin before non-recurring items close to that of the first half ", which reached 8.6% of turnover," if markets are deteriorating not beyond current expectations. " The operating profit amounted to 708 million euros (-17.8%).
In 2007, this margin was 9.8% and 10.2% in the first half of 2007.
In April, the group estimated that its operating income in 2008 could approach that of 2007 (1645 billion), having already revised up the impact of raw materials.
Throughout the half, Michelin has increased the prices of its tyres to cope with this increase, but these price adjustments were not sufficient to offset the impact of raw materials weighed for 239 million in operating income of the semester.
The net profit, to 430 million euros, was down by 1.6%. Turnover fell by 1.9% to 8239 billion, but up 4.2% to parity and constant perimeter.
But in the context, up 2% of volumes sold is deemed "encouraging" by the group, which welcomes the progress of the Michelin brand in all regions of the world. " Other reasons for satisfaction, growth in emerging countries and in tires specialty (civil engineering, agriculture, aircraft) with high profitability.
The group also focuses on the proper conduct of its plan of competitiveness for 2010. This programme is in the process of demonstrating its value and gives us the greatest hope for the future ", acted as chief financial officer.
Beyond the economy, Michelin notes with interest the "structural movements" in the car, believed to have products to meet them. The group anticipates a "change in consumer behaviour", turning to tire promoting a lesser consumption.
One factor that will remain on the agenda in the future: on electric vehicles, 30 to 35% of autonomy is related to tyres, ensures Didier Miraton, director of research and industrial performance of the group.
At 11:50 GMT, the Michelin was down 1.95% to 43.29 euros on the stock exchange in a market up 1.06%.
by erectusplus at 8:42 AM |
0 Comments:
Post a Comment
<< Home