TyresDekho

Michelin Foresees A Slight Decline In 2020 Revenue, Raises Coronavirus Insecurity

Published On 25-Mar-2020 18:16:38By TyreDekho Team

Tyre maker sees a dip of 1.2% in volumes in line with the overall markets, reopens China factories

Image result for michelin banner, michelin

A four per cent fall in the shares was witnessed on 11th Feb (Tuesday). This impact was recorded just after Michelin said in a statement that the operating profit and cash flow for 2020 would be less than its earlier predictions.

Europe’s largest tyre manufacturer asserted that due to the outbreak of coronavirus in China the sales will see a decline this month. This is another setback to the French tyre giant after unfavourable market outlook leading to cut in its profit forecast for the ongoing year.

On Monday morning, Michelin resumed the operations of its three production facilities in China. It predicted free cash flow of more than 1.5 billion euros, without accounting for the coronavirus effects.

The infectious disease spread of coronavirus has taken the lives of more than 1000 people and has severely affected China’s manufacturing capacity. After the Chinese administration relieved some restrictions on work and travel, Monday saw employees getting back to work in their respective factories and offices across China.

Owing to which, many international automotive giants in China are forced to shut down their operations temporarily, which includes Fiat Chrysler Automobiles NV, Cie. Generale des Etablissements Michelin, and others. Moreover, in view of the epidemic spread a Chinese car-parts supplier to the PSA Group has declared ‘force majeure’ meaning ‘chance occurrence, or unavoidable accident’.

Also Read: Does Your Existing Health Insurance Policy Cover Coronavirus (COVID-19) Disease

According to Michelin, the segment operating income will see a downfall from 3.01 billion Euros (USD 3.3 billion) in 2019, as per the earnings statement. Moreover, the free cash flow will be more than 1.5 billion Euros, excluding the coronavirus effects. Earlier, for the ongoing year, Michelin had set an operating income target of 3.7 billion Euros exclusive of currency swings and more than 1.7 billion Euros in free cash flow.

"In 2019, in a highly unstable environment, Michelin successfully maintained its market share and improved its earnings," said Managing Chairman Florent Menegaux.

As per the Paris-based tyre maker, a minor decline will be witnessed in its passenger car and light truck tyre markets this year.

You Might Also Be Interested In

Latest Tyres

  • Car
  • Bike
  • Truck
  • ZVTV A4
    ZVTV A4
    165/80 R14 85T
    Rs3,250
    • iconCar Tyre
    • iconTubeless
    • iconFuel Efficient
    • iconWet Grip
    View Festival Offers
  • icon5 Years
    CZAR A/T
    CZAR A/T
    255/65 R18 111H
    Rs11,390
    • iconCar Tyre
    • iconTube
    • iconDry Grip
    • iconWet Grip
    View Festival Offers
  • Apterra Cross
    Apterra Cross
    205/65 R16
    Rs6,100
    • iconCar Tyre
    • iconTubeless
    • iconFuel Efficient
    • iconWet Grip
    View Festival Offers
  • AT 20 Grand Trek
    AT 20 Grand Trek
    265/65 R17 110S
    Rs14,699
    • iconCar Tyre
    • iconTubeless
    • iconFuel Efficient
    • iconWet Grip
    View Festival Offers
  • FR500
    FR500
    185/65 R14 86H
    Rs3,491
    • iconCar Tyre
    • iconTubeless
    • iconFuel Efficient
    • iconWet Grip
    View Festival Offers
  • UM 551
    UM 551
    165/80 R14 85T
    Rs3,505
    • iconCar Tyre
    • iconTubeless
    • iconFuel Efficient
    • iconWet Grip
    View Festival Offers
  • Smart UX Royal
    Smart UX Royal
    215/60 R17
    Rs8,055
    • iconCar Tyre
    • iconTubeless
    • iconFuel Efficient
    • iconWet Grip
    View Festival Offers
  • CINTURATO P1
    CINTURATO P1
    245/40 R17 91W
    Rs14,577
    • iconCar Tyre
    • iconTubeless
    • iconFuel Efficient
    • iconWet Grip
    View Festival Offers
  • Centauro NS
    Centauro NS
    190/55 R17
    Price Coming Soon
    • iconBike Tyre
    • iconTubeless
    • iconFuel Efficient
    • iconWet Grip
    View Festival Offers
  • Smart Blaze RYDR BR43
    Smart Blaze RYDR BR43
    140/70-17
    Rs4,200
    • iconBike Tyre
    • iconTubeless
    • iconFuel Efficient
    • iconWet Grip
    View Festival Offers
  • Conta 725
    Conta 725
    90/90 R12
    Price Coming Soon
    • iconBike Tyre
    • iconTubeless
    • iconFuel Efficient
    • iconWet Grip
    View Festival Offers
  • icon5 Years
    Gripp XL
    Gripp XL
    90/90 R19
    Rs1,750
    • iconBike Tyre
    • iconTubeless
    • iconFuel Efficient
    • iconWet Grip
    View Festival Offers
  • icon5 Years
    M6303
    M6303
    90/90 R12 54J
    Price Coming Soon
    • iconBike Tyre
    • iconTubeless
    • iconFuel Efficient
    • iconWet Grip
    View Festival Offers
  • BT SPORTMAXX
    BT SPORTMAXX
    140/70 R17
    Price Coming Soon
    • iconBike Tyre
    • iconTubeless
    • iconFuel Efficient
    • iconWet Grip
    View Festival Offers
  • Feelfree
    Feelfree
    120/70 R15 56H M/C
    Price Coming Soon
    • iconBike Tyre
    • iconTubeless
    • iconFuel Efficient
    • iconWet Grip
    View Festival Offers
  • Conti Aqua Gripp
    Conti Aqua Gripp
    3.00-18 6PR
    Rs1,560
    • iconBike Tyre
    • iconTube
    • iconDry Grip
    • iconWet Grip
    View Festival Offers
  • Load Power NW
    Load Power NW
    10.00R20
    Price Coming Soon
    • iconTruck Tyre
    • icon
    • iconFuel Efficient
    • iconWet Grip
    View Festival Offers
  • X INCITY XZUE3+
    X INCITY XZUE3+
    295/80 R22.5
    Price Coming Soon
    • iconTruck Tyre
    • iconFuel Efficient
    • iconWet Grip
    View Festival Offers
  • ENDUTMRACE RD
    ENDUTMRACE RD
    315/70 R22.5
    Price Coming Soon
    • iconTruck Tyre
    • iconFuel Efficient
    • iconWet Grip
    View Festival Offers
  • JET XTRA
    JET XTRA
    8.25-16
    Price Coming Soon
    • iconTruck Tyre
    • iconFuel Efficient
    • iconWet Grip
    View Festival Offers
  • STEEL MUSCLE-S3P4
    STEEL MUSCLE-S3P4
    10.00 R20
    Price Coming Soon
    • iconTruck Tyre
    • iconTube
    • iconFuel Efficient
    • iconWet Grip
    View Festival Offers
  • Mile XL X3 R
    Mile XL X3 R
    295/95 D20
    Price Coming Soon
    • iconTruck Tyre
    • iconFuel Efficient
    • iconWet Grip
    View Festival Offers
  • TG 01
    TG 01
    10 R 20
    Rs43,000
    • iconTruck Tyre
    • iconTube
    • iconFuel Efficient
    • iconWet Grip
    View Festival Offers
  • AGB 21
    AGB 21
    295/80 R 22.5
    Rs36,000
    • iconTruck Tyre
    • iconTubeless
    • iconFuel Efficient
    • iconWet Grip
    View Festival Offers

Best Tyres

  • Car
  • Bike
  • Truck
  • SecuraDrive
    SecuraDrive
    205/60 R16
    Rs6,475
    • iconCar Tyre
    • iconTubeless
    • iconFuel Efficient
    • iconWet Grip
    View Festival Offers
  • ZLX
    ZLX
    155/80 R13 79T
    Rs2,850
    • iconCar Tyre
    • iconTubeless
    • iconWet Grip
    • iconDry Grip
    View Festival Offers
  • Milaze
    Milaze
    185 R14
    Rs3,552
    • iconCar Tyre
    • iconTubeless
    • iconFuel Efficient
    • iconWet Grip
    View Festival Offers
  • Vectra
    Vectra
    155/70 R14 77T
    Rs2,649
    • iconCar Tyre
    • iconTubeless
    • iconWet Grip
    • iconDry Grip
    View Festival Offers
  • Fuel Smarrt
    Fuel Smarrt
    165/80 R14 85T
    Rs3,505
    • iconCar Tyre
    • iconTubeless
    • iconFuel efficient
    • iconDry Grip
    View Festival Offers
  • Taximax
    Taximax
    185/70 R14 88T
    Rs3,940
    • iconCar Tyre
    • iconTubeless
    • iconFuel Efficient
    • iconWet Grip
    View Festival Offers
  • icon5 Years
    ZVTV
    ZVTV
    185/65 R15 88S
    Rs4,750
    • iconCar Tyre
    • iconTubeless
    • iconWet Grip
    • iconDry Grip
    View Festival Offers
  • Alnac
    Alnac
    195/70 R14 91H
    Price Coming Soon
    • iconCar Tyre
    • iconTubeless
    • iconWet Grip
    • iconDry Grip
    View Festival Offers
  • WINMILE D
    WINMILE D
    11.00 R20
    Rs15,000
    • iconTruck Tyre
    • iconFuel Efficient
    • iconWet Grip
    View Festival Offers
  • FM Super
    FM Super
    10.00-20/16
    Price Coming Soon
    • iconTruck Tyre
    • iconFuel Efficient
    • iconWet Grip
    View Festival Offers
  • MUSCLEROK
    MUSCLEROK
    10.00-20
    Price Coming Soon
    • iconTruck Tyre
    • iconTube
    • iconFuel Efficient
    • iconWet Grip
    View Festival Offers
  • HCL Super
    HCL Super
    12.00-20/18
    Price Coming Soon
    • iconTruck Tyre
    • iconFuel Efficient
    • iconWet Grip
    View Festival Offers
  • Lug Plus
    Lug Plus
    10.00-20/16
    Price Coming Soon
    • iconTruck Tyre
    • iconFuel Efficient
    • iconWet Grip
    View Festival Offers
  • Mile XL Rib Pro
    Mile XL Rib Pro
    8.25-20/16P
    Price Coming Soon
    • iconTruck Tyre
    • iconFuel Efficient
    • iconWet Grip
    View Festival Offers
  • Lug XL Pro
    Lug XL Pro
    8.25-20/16
    Price Coming Soon
    • iconTruck Tyre
    • iconFuel Efficient
    • iconWet Grip
    View Festival Offers
  • THE LUG-PLUS
    THE LUG-PLUS
    10.00-20
    Price Coming Soon
    • iconTruck Tyre
    • iconTube
    • iconFuel Efficient
    • iconWet Grip
    View Festival Offers
×
Which is your city ?