Analyst / Investor conference webcast

The conference call is held on July 25, 2019?at 6:30pm CET and is broadcast on the website.

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In a more difficult than expected environment, segment operating income up +8% to €1,438 million

Rigorous price mix steering and competitiveness plan management

Contribution of acquisitions as expected

Guidance confirmed with a lowered market scenario


  • In weaker than expected markets, Michelin’s volumes declined by +0.9%, with in particular:
    • Group positions maintained in Passenger Car and Light Truck tires, in markets down +2% due to the fall-off in Original Equipment demand.
    • Stable volumes in Truck tires, in a market down +1%, benefiting notably from the deployment of Services and Solutions.
    • Further growth in the mining tire business, helping to offset the steep drop in agricultural tire volumes, due to declining markets.
  • The price-mix/raw materials effect added a net €79 million, thanks to sustained price discipline and continuous enhancement in the value of the mix.
  • €40 million in competitiveness gains, net of inflation.
  • €101 million contribution from recently acquired Fenner and Camso, as expected.
  • Acquisitions of Multistrada and Masternaut in line with the Group’s growth strategy.
In highly volatile markets, the Group demonstrated its ability to protect its margins by tight price steering, and by rigorously implementing its competitiveness plan. It also benefited from strong contribution from its recent acquisitions. In this persistently uncertain business environment, the Group pursues its competitiveness initiatives, its firm pricing policy in order to maintain its leadership in its tire businesses, and to continue the deployment of its growth strategy.
Florent Menegaux, Chief Executive Officer, Michelin Group

Guidance confirmed

In 2019, the Passenger Car and Light Truck tire markets are expected to decline by +1%, as the modest +1% growth in the Replacement segment fails to offset the steep +4.4% contraction in the Original Equipment segment. The Truck tire markets are expected to decline more quickly in the second half, to end the year down +2%. Mining and aircraft tire markets should continue to expand, offsetting the steep drop in agricultural tire markets and in Original Equipment demand in construction tire markets. The full-year impact of raw materials costs and customs duties is estimated at around a negative €100 million, as forecast.

In this scenario, Michelin confirms its guidance for 2019, with volume growth in line with global market trends; segment operating income exceeding the 2018 figure at constant exchange rates and before the estimated €150 million contribution from Fenner and Camso; and structural free cash flow of more than €1.45 billion.*


* Of which €150 million from the application of IFRS 16.

Year over year comparison


(1)?Segment Operating Result?: operating result from recurring activities, before the amortization of brands and customer lists recognized on the acquisition of the corresponding companies

(2) Following the acquisition of Camso and the merger of the Off-the-road businesses, certain minor adjustments have been made to the composition of the segments

(3) Free cash flow: net cash from operating activities less net cash from investing activities less net cash from other current financial assets, before distributions

(4) At period-end

(5) Including IFRS 16 impact

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