Michelin has registered a net growth of 8.5 per cent in its revenue during the first half of 2015 as compared to the same period in 2014. According to the French tyre manufacturer’s recently-revealed financial results, the revenue of the tyre maker increased to $11.6 million between January and June 2015. The operating income also grew by 9 per cent to $1.4 million.
The company recorded an increase of 2.4 per cent in its sales volume during the first half of 2015. In its official statement, Michelin claimed that sales of passenger car tyres and light commercial vehicle tyres outpaced the market while commercial vehicle tyre sales (bus and truck) improved ‘slightly’ than market levels. The manufacturer also reported strong growth in mature economies, however, in most of the new markets, it was ‘sluggish’.
Commenting on the sales report, Jean-Dominique Senard, CEO, Michelin group, said, “Michelin achieved strong growth in the first half of the year by leveraging its broader portfolio of solutions, by expanding access to customers and by capturing the rising demand in its traditional markets. The success of our most recent lines like Michelin CrossClimate and the new BFGoodrich tyres, as well as our strengthened positions in the original equipment segment, confirm the importance of innovation for the group’s growth. Combined with expected deployment of the competitiveness plan, Michelin can confirm its full-year guidance.”
Michelin expects growth in developed markets to continue rising throughout the second half of 2015. However, the tyre manufacturer believes that new markets will be more challenging. The rise in raw material prices will also have adverse effect on the company’s growth, the company said. Michelin, however, is looking forward to pursue a similar kind of sales/profit surge as observed in the first six months of 2015.