PARIS (Feb. 15, 2011)—Michelin is targeting unit sales growth of 6.5 percent in 2011, while also looking to improve on operating income of $2.24 billion, the company said in its fiscal 2010 results.
The French tire maker didn't forecast a sales revenue figure for 2011 but said it intends to pass along “all of the additional raw materials costs” it experiences this year.
Revenue last year grew 20.8 percent to $23.7 billion on 13.4-percent higher unit sales and favorable gains in price/mix. Operating income nearly doubled, raising the income/sales ratio nearly four points to 9.5 percent.
Net income was up nearly 10-fold to $1.3 billion, or 6.6 percent of sales, the company said.
The full-year impact of raw materials costs on operating income is estimated at nearly $2 billion, assuming natural rubber averages $4.80 per kilogram throughout the year, Michelin said.