MICHELIN (Compagnie Generale des Establissements Michelin S.C.A.) Business Report FY2010
Business Highlights
Financial Overview |
(in million euros) |
FY2010 | FY2009 | Rate of change(%) | Factor | |
Overall | ||||
Sales | 17,891 | 14,807 | 20.8 | 1) |
Operating income(*) | 1,695 | 862 | 96.6 | |
Business unit of Passenger Car-Light Truck & Related Distribution | ||||
Sales | 9,790 | 8,280 | 18.2 | 2) |
Operating income(*) | 1,014 | 661 | 53.4 | |
Business unit of Truck & Related Distribution | ||||
Sales | 5,680 | 4,496 | 26.3 | 3) |
Operating income(*) | 249 | -69 | - |
Factors
1)
-The increase was led by a 13.4% improvement in sales volumes and a 1.7% gain from the price mix, as higher prices amply offset the impact of an unfavorable product mix throughout the year.
2)
-In all, net sales in the Passenger Car and Light Truck Tires and Related Distribution segment stood at 9,790 million euro for the year,
up 18.2% on 2009. Unit sales were sustained throughout the year by fi rm demand for winter tires and the strength of the MICHELIN
brand.
3)
-Net sales in the Truck Tires and Related Distribution segment amounted to 5,680 million euro for the year, up 26.3% on 2009. Sales volumes rose sharply against low prior-year comparatives, with faster growth at the end of the year causing certain supply issues in mature markets.
Contracts
-In Jan, 2011, “MICHELIN Pilot Sport 3” sports tire for passenger cars was chosen as an originally equipped tire for the Audi compact car “A1” for its high performance in sporty driving. (From an article in the Nikkan Jidosha Shimbun on January 14, 2011)-The Company supplies its high-performance tires for the new Porsche Cayenne. Three tire models - MICHELIN Latitude Tour HP, Latitude Sport and Latitude Alpin - will be offered for the vehicle. (From a press release on May 6, 2010)
-All of The Ferrari 599 GTO(a production run of 599 vehicles) will be equipped with Michelin tires specially designed for this model. The tires come in different sizes: 285/30ZR20 for the front and 315/35ZR20 for the rear. (From a press release on May 6, 2010)
-In Apr. 2010, Ford added 13 new companies to its Aligned Business Framework (ABF), bringing the total to 90 members, and Michelin was included as one of them. Ford created ABF in 2005 to strengthen its collaboration with key suppliers. (From a Ford press release on April 23, 2010)
R&D
R&D Expenditure |
(in million euros) |
FY2010 | FY2009 | FY2008 | |
Overall | 545 | 506 | 499 |
% of sales | 3.0% | 3.4% | 3.0% |
R&D Structure
-4,000 research engineers and developers are engaged in the R&D operations in France, Spain, the United States and Japan.-The Company has undertaken a top-to-bottom upgrade of its research and development center in Ladoux, near Clermont-Ferrand, France. It will consolidate all Michelin R&D teams and laboratories on the same site to strengthen its innovation capabilities and shorten new tire time-to-market. The project includes the renovation of existing buildings and the construction within the site of a 67,000-square-meter building called RDI Campus. The entire project represents an investment of more than 100 million euros. Construction of the building will begin in spring 2012. The first section of the main building – for around 600 people – will be delivered in 2014. In the center, where some 3,300 people work, a new complex will be built by 2017. The second will be completed in late 2016, when 1,000 additional people will be installed in the Center. (From a press release on January 20, 2011)
Investment Activities
Capital Expenditure by Business Segments |
(in million euros) |
FY2010 | FY2009 | FY2008 | |
Passenger Car Light Truck | 599 | 322 | 635 |
Truck Tires | 292 | 178 | 353 |
Others | 209 | 172 | 283 |
Total | 1,100 | 672 | 1,271 |
Capital Expenditure by Geographical Segments |
(in million euros) |
FY2010 | FY2009 | FY2008 | |
Europe | N.A. | 423 | 709 |
North America | N.A. | 152 | 280 |
Others | N.A. | 97 | 282 |
Total | 1,100 | 672 | 1,271 |
-Capital expenditure is expected to total nearly 1.6 billion euro a year over the 2011-2015 period.