The tire manufacturer Michelin wants to offset higher wages this year with lower energy and transport costs.
In its home country of France, Continental’s competitor will increase salaries by five percent. The effects of the crisis on the Red Sea have so far been limited, said CFO Yves Chapot in a telephone interview on Monday. “This has nothing to do with the disruptions we experienced in late 2021 and early 2022.” The manager left further mergers and acquisitions open.
Michelin expects sales volumes to continue to decline in 2024. At constant exchange rates, the company still wants to make an operating profit of more than 3.5 billion euros. The free cash flow before acquisitions is expected to amount to more than 1.5 billion euros.
In the past year, group sales fell by almost one percent to 28.3 billion euros. Without exchange rate effects there would have been a slight increase. Although Michelin sold fewer tires to its customers, price increases allowed the company to increase both revenue and operating income: Michelin earned almost 3.6 billion euros in daily business – 5.2 percent more than in the previous year. The cash inflow adjusted for takeovers was a good 3 billion. In 2022 this was still slightly negative.
At 1.35 euros per share, the dividend is expected to be eight percent higher than in 2022. Michelin also announced share buybacks of up to one billion euros for the period 2024 to 2026.
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