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Michelin reports 2004 results

Michelin has reported financial improvements in its 2004 financial results.

Operating income was up 13.7% year on year for the year to December 31, with net sales up 6%. At 8.3%, Michelin’s operating margin was improved by 0.9% over 2003, to 8.3% of net sales.

Net income rose 60%, after non-recurring items, and net financial debt went down for the fourth consecutive year.

Net sales were €15,689,000, (£10,901,374) an increase of 2.1% on 2003.

Sales volumes rose 2.7%, and operating income was up 13.7% at €1,299 (£902.8). Net income included a non-recurring charge of €206m (£143.1m), of which more than half is to cover a potential loss on the planned disposal of Michelin’s activities in the wheel business, announced on February 16, 2005.

Commenting on the year ahead, Edouard Michelin says: “We look to 2005 with confidence as such momentum is built on our strengths. We are targeting a level of operating result which is at least as good as that achieved in 2004 despite a more difficult environment, in particular because of additional strong raw material price increases".

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