Michelin grows sales, earnings amid 2022 challenges

Paris - Group Michelin has posted a 20.2% year-on-year increase in sales to €28.6 billion for 2022, helped by “firm pricing discipline and fast-growing non-tire sales.”

Segment operating income was, meanwhile, driven by “dynamic pricing management”, reaching €3.4 billion, the French tire maker reported 13 Feb.

Amid market turbulence and inflationary trends, it stated, tire markets were “up slightly” in 2022, supported by OE sales and solid demand from truck and mining tire customers.

However, tire sales volumes fell, reflecting the impacts of the conflict in Ukraine, Covid restrictions in China as well as group policy to protect margins. 

“Pricing maintained unit margin integrity, offsetting a record €2.7 billion in higher costs,” according to Michelin.

Non-tire sales grew by 22% at constant exchange rates, while the group also noted a 6.2% positive currency effect, led by the US dollar.

Segment operating income totaled €3.4 billion or 11.9% of sales in 2022, compared to equivalent prior-year figures of €3.0 billion and 12.5%. 

Each reporting unit delivered improvements in segment operating income, particularly Specialties with second-half margins reaching 16.2%.

In terms of its outlook for 2023, Michelin said that “based on a soft market demand scenario, [it aims] to report segment operating income in excess of €3.2 billion at constant exchange rates.” 

ERJ will report further on the details within Michelin’s 2022 statement both online and in the March/April edition of European Rubber Journal magazine.