Following the publication of Michelin’s first quarter 2022 financial results, group CEO Florent Menegaux commented on the appointment of Pierre Michelin as president of the Michelin family’s Mage-Invest holding company. Mage-Invest holds 4.2 per cent of the shares and 7 per cent of the voting rights of Michelin Group.
Year-on-year comparisons of financial performance tell us arguably more about global events than an individual company’s economic trajectory at the moment. Thus, it came as no surprise a few months back when Michelin reported much healthier first-half results compared with pandemic-riddled 2020. Similarly, eyebrows aren’t raised now when the company notes the impact of rising materials, shipping and energy costs as well as a shortage of semiconductors and labour shortages upon its performance in Q3 2021.
Florent Menegaux and Yves Chapot will remain at the helm at Michelin for a further four years. The Société Auxiliaire de Gestion (SAGES), under the chairmanship of Vincent Montagne and in its capacity as a non-managing general partner of the Compagnie Générale des Établissements Michelin (CGEM), has decided to renew the mandates of Menegaux as a Managing General Partner and of Chapot as a General Manager.
The Michelin Group has shared details about what chief executive officer Florent Menegaux calls “a very good first half.” In an environment shaped by an enduring health crisis, a robust market recovery was tempered by major disruptions in the global supply chain. In this context, Michelin increased tyre volumes by 22.8 per cent, sales 19.6 per cent year-on-year, and achieved €1,421 million in segment operating income for the period.
Sales of Michelin tyres were 7.5 per cent higher in the first quarter of 2021 compared with a year earlier. This rise in sales volumes was driven by 20 per cent year-on-year market growth for truck tyres in the first quarter of 2021 and nine per cent market growth for car and light truck tyres.
Groupe Michelin’s Capital Markets Day presentation, conducted via webcast on 8 April, set out its agenda for the next decade, putting its plans in front of leading global banks and financial firms. Circling around a central theme of sustainability, the group executive committee, led by managing chairman Florent Menegaux and general manager and chief financial officer Yves Chapot, showed how Michelin intends to “diversify while strengthening” in order to achieve its key economic and ecological targets. Chapot and Menegaux stated that expanding “non-tyre revenue” up to more than one-fifth of the group’s turnover by 2030 would make the group more agile and robust in the face of future crises. The current global health crisis has been instructive in this regard; the committee credited the development of the group’s non-tyre portfolio with assisting in its resilience over the difficulties of 2020, and now intends to continue the acceleration of its diversification. Its digital and materials innovations will simultaneously “deliver new growth,” while contributing to the overall strength of the group: a leitmotif of the committee’s presentation.
Against the backdrop of the global coronavirus pandemic, Michelin Group reported sales of 20.5 billion euros in 2020, down 15.2 per cent. Segment operating income was 1.9 billion euros, representing 9.2 per cent of sales. Net income amounted to 625 million euros and was thus 63.9 per cent lower than in the previous year.
France’s government has launched a national hydrogen strategy valued at seven billion euros, and aims to build up capacity for hydrogen from non-fossil sources by 2030. Michelin applauds this step and has reiterated its commitment to its own goals in this field. The company says its work here will mean a “significant share” of its business will be non-tyre related in a decade’s time. Fabio Ferrari, co-founder of Symbio, is tasked with leading the development of Michelin’s Hydrogen Mobility strategy and supporting its deployment.
Michelin sales contracted more than 20 per cent in the first half of 2020 due to coronavirus affected markets. The 20.6 per cent contraction in sales resulted in an operating result of 310 million euros – 3.3 per cent of sales – 78.5 per cent less than in 2019 (1,438 billion euros). Volumes fell by 22.4 per cent. Operating income went from 1.381 billion to 177 million euros, while net income fell from 844 million to a loss of 137 million, with earnings per share going from 4.74 euros to a loss of 0.75 euros.
On 27 January, Michelin signed an agreement with global union federation IndustriALL to set up the Michelin Global Works Council. The agreement was finalised by Florent Menegaux, chief executive officer of the Michelin Group, and Valter Sanches, general secretary of IndustriALL Global Union. Its signing follows nearly two years of discussion and negotiation.
Michelin’s prototype puncture-proof tyre UPTIS (Unique Puncture-proof Tyre System) has won a hat-trick of innovation awards. The airless tyre has been recognised with the Golden Steering Wheel Award 2019 in Germany, the Coyote Automobile Award 2020 in France and the AVT ACES (Autonomous Vehicle Technology – Autonomy Connectivity Electrification Mobility Services) Award 2020 in the USA.
Michelin, IFPEN, and Axens have announced the construction of an industrial-scale prototype of a plant for producing butadiene from bioethanol. The plant is located in France and is the first facility of its kind.
Michelin has named Alexis Garcin as the next chairman and president of Michelin North America. He succeeds Scott Clark, who was recently promoted to Michelin’s Group Executive Committee as executive vice president responsible for the global passenger car and light truck business, motorsports, Experiences (including the Michelin Guides) and regional oversight of the Americas.