PARIS, Feb 16 ― French tyre manufacturer Michelin said yesterday it remained profitable in 2020 despite a pandemic-induced drop sales, thanks in part to prices dropping on raw materials.
With auto sales taking a hit worldwide, Michelin also saw its sales drop by 15 per cent to €20 billion (RM97.9 billion).
The firm's net profit meanwhile fell by nearly two-thirds from 2019, to €1.9 billion.
Michelin has been trying to move upmarket with a greater focus on premium tyres and specialist products, and the shift in its product mix helped earnings in 2020.
Meanwhile it cut administration costs by €240 million and cut investments by nearly a third.
In January, the firm announced it hoped to shed 2,300 posts in France over the coming three years without any forced layoffs.
Michelin said “in a still highly uncertain environment as the health crisis unfolds” that it expected the passenger car and light truck tyre markets to expand by 6 to 10 per cent this year.
For trucks it sees an increase of between 4 and 8 per cent, and 8 to 12 per cent in speciality markets.
It hopes operating profits will jump to at least €2.5 billion next year. ― AFP
