Groupe Michelin reported net sales down year over year for 2014, with sales for the year amounting to €19,553 million (approximately $22,128 million USD) compared with €20,247 million (approx. $22,913 million USD) in 2013. The tiremaker said the figure includes a €304 million negative currency effect and the €75 million negative effect of changes in the scope of consolidation.michelin.
The tiremaker reported net sales in the passenger car and light truck markets were slightly down year over year with €10,498 million (approx. $11,880 million USD) in sales for 2014 compared with €10,693 million (approx. $12,101 million USD) in 2013. Once the negative currency effect is factored in, however, Michelin reports a 2% growth in sales for the unit.
In North America, Michelin’s OE business for passenger and light truck tires grew 5%, it reported. The North American replacement side also grew 6%.
For global commercial truck tires, Michelin reported net sales of €6,082 million (approx. $6,883 million USD) compared with €6,425 million (approx. $7,271 million USD) in 2013. The unit’s performance reflected a modest 1% increase in unit sales, tight management of production costs and overheads, and the currency effect, Michelin said.
In North America, both the OE and replacement truck market expanded rapidly. OE sales grew 16% due to demand from OEMs operating at full capacity and by an increase in the Class 8 segment. On the replacement side, sales grew 8%, Michelin said.
In 2015, Michelin plans to focus on growing sales in line with global trends.
“This year, we will focus on stepping up our growth drivers, including the launch of new Michelin brand ranges and a revamped line-up of our other brands, a significant improvement in the quality of our customer service, and more assertive distribution. The competitiveness plan will also be accelerated and now aims to achieve cumulative savings of €1,200 million over the period 2012-2016, versus €1,000 previously,” said Jean-Dominique Senard, CEO of Groupe Michelin.
Source: tirereview.com
