PARIS (Feb. 12, 2010)—Michelin views its prospects this year “with confidence” but is declining to make specific earnings or sales forecasts for fiscal 2010 because of market uncertainties and the spectre of rising raw materials costs.
These factors “are prompting us to exercise extreme vigilance,” Managing General Partner Michel Rollier said as the firm reported its fiscal 2009 results.
He said Michelin is therefore sharply focused on preserving its competitive strengths and increasing its leadership by continuing, as in 2009, to pursue its innovation initiatives, maintain cost discipline and enhance its future growth potential by investing in growth countries.
For fiscal 2009, Michelin reported net income of $144.6 million on sales of $20.6 billion, down 70.9 and 9.8 percent, respectively.
Regarding capital spending, Michelin has disclosed in the past year nearly $2 billion in investments in new plants in China, India and Brazil, three areas identified as “growth countries.”