Skip to main content
Sister Publication Links
  • European Rubber Journal
  • Plastics News
  • Tire Business
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • Automotive
    • Tire
    • Non-Tire
    • Suppliers
    • Silicone
    • Online Exclusive
    • Latex
    • Technical Notebooks
    • Executive Action
    • Government/Legal
    • Opinion
    • Rubber Division IEC
    • ITEC
    • Blogs
    • Sustainability
    • Products
    • Wacky World of Rubber
  • War in Ukraine
  • Custom
    • Sponsored Content
    • White Papers
  • Resources
    • Directory
    • Classifieds & Mold Mart
  • Data
  • Events
    • RN Events
    • RN Livestreams/Webinars
    • Industry Events
    • Past Events
    • Rubber News M&A Live
    • 2022 Hose & Belt Manufacturers Conference
    • 2022 International Silicone Conference
    • 2022 International Tire Exhibition & Conference (ITEC)
  • Advertise
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. Financial
April 09, 2021 12:11 PM

Video: Michelin looks to diversify for additional growth opportunities

Tire Business Report
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    CLERMONT-FERRAND, France—By the start of the next decade, Michelin will be a markedly different company, with non-tire-related business activities accounting for up to 30 percent of the firm's annual sales, the firm's top executives said this week during a Capital Markets Day presentation.

    By 2030, the group expects to report nearly $28 billion in annual sales, up 22.5 percent over 2020's revenue, with the bulk of the growth coming from new business activities, according to Chief Financial Officer Yves Chapot. That represents compounded annual growth of 5 percent.

    "With this new … strategic plan, [Michelin] is embarking on an ambitious growth dynamic for the next 10 years," Michelin CEO Florent Menegaux told those listening to the virtual presentation of the "Michelin in Motion" strategic plan.

    "By 2030 the group's profile will have significantly changed with the ramp-up of new, high value-added businesses in both around and beyond markets," he added. "It is this ability to constantly reinvent itself that has underpinned Michelin's strength for more than 130 years and which today gives us confidence in the future."

    Along with growth, Michelin is targeting an operating ratio of 13.5 percent and annual cash flow of more than $3.5 billion, along with a revision to the dividend policy to pay out 50 percent of earnings before non-recurring items, starting in 2021.

    Other financial targets outlined during the presentation included various industrial competitiveness drivers that will deliver $90 million in savings a year, net of inflation, through 2023, and a net reduction in selling, general and administrative expenses in the tire business by 2023 of nearly $75 million and $140 million by 2025.

    Michelin's top executives also outlined a wide-ranging portfolio of the company's expectations, concerns and responsibilities.

    "I am convinced that the engagement and capacity for innovation of our teams will enable us to deliver a harmonious blend of sustained business performance, continuous employee development and a commitment to the planet and our host communities," Menegaux said, adding that Michelin intends to "remain true its DNA" as it grows and ramps up new high-value-added businesses.

    As part of the strategy, Michelin said it was targeting new non-tire growth territories, while continuing to expand and invest in its tire business.

    Led by its capacity for innovation and its materials expertise, Michelin said it was looking to drive "strong expansion" in five "around and beyond tire" business segments: services and solutions, flexible composites, medical devices, metal 3D printing and hydrogen mobility.

    In services and solutions, the group said it will "broaden and deepen" its portfolio of fleet solutions, in particular by leveraging smart objects and the value of its collected data.

    Michelin also intends to "expand significantly in the fast-growing flexible composites market," which the company defines as conveyors, belts, coated fabrics and seals.

    Furthermore, the Clermont-Ferrand-based group said it had begun to calculate the costs of some of its "negative externalities," such as carbon emissions and water and solvent use. The group said it was committed to reducing those costs by 10 percent by 2023.

    __________________________

    European Rubber Journal contributed to this article.

    Related Article
    Video: Michelin driving for '100% sustainable' tires by 2050
    Michelin eyes 2021 rebound amid 'uncertain environment'
    Michelin gets R&D insight from IMSA partnership
    Letter
    to the
    Editor

    Rubber News wants to hear from its readers. If you want to express your opinion on a story or issue, email your letter to Editor Bruce Meyer at [email protected].

    Most Popular
    1
    Wacker may add silicon metal capacity in Norway
    2
    Wacker aims to increase global silicone capacity
    3
    Freudenberg Sealing chief technology officer set to retire
    4
    Stellantis to replace North American purchasing chief amid supplier relation woes
    5
    COVID lockdowns, lower crude prices cause NR markets to slip
    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Get our newsletters

    Staying current is easy with Rubber News delivered straight to your inbox, free of charge.

    Subscribe Today

    Subscribe to Rubber News to get the best coverage and leading insights in the industry.

    SUBSCRIBE
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter

    MISSION

    To serve companies in the global rubber product industry by delivering news, industry insights, opinions and technical information.

    Contact Us

    2291 Riverfront Pkwy, Suite 1000
    Cuyahoga Falls,
    OH 44221

    Customer Service:
    877-320-1726

    Resources
    • About Us
    • Digital Edition
    • Staff
    • Advertise
    • Order Reprints
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Careers
    • Ad Choices Ad Choices
    • Sitemap
    Partner Sites
    • Tire Business
    • European Rubber Journal
    • Plastics News
    • Plastics News China
    • Urethanes Technology
    • Automotive News
    • Crain Brands
    Copyright © 1996-2022. Crain Communications, Inc. All Rights Reserved.
    • News
      • Automotive
      • Tire
      • Non-Tire
      • Suppliers
      • Silicone
      • Online Exclusive
      • Latex
      • Technical Notebooks
      • Executive Action
      • Government/Legal
      • Opinion
      • Rubber Division IEC
      • ITEC
      • Blogs
        • Products
        • Wacky World of Rubber
      • Sustainability
    • War in Ukraine
    • Custom
      • Sponsored Content
      • White Papers
    • Resources
      • Directory
      • Classifieds & Mold Mart
    • Data
    • Events
      • RN Events
        • 2022 Hose & Belt Manufacturers Conference
        • 2022 International Silicone Conference
        • 2022 International Tire Exhibition & Conference (ITEC)
      • RN Livestreams/Webinars
      • Industry Events
      • Past Events
      • Rubber News M&A Live
    • Advertise
    • DIGITAL EDITION