Paris, France– Michelin, the world’s top tyre maker, on Monday posted record operating profits as a focus on premium products, including for SUVs, helped it survive an otherwise lackluster year.
Sales at the French firm dipped 0.9 percent last year to 28.3 billion euros ($30.5 billion) in what it described as adverse market conditions with the replacement tyre market hit by massive destocking.
Sales by volume dropped by 4.7 percent but Michelin said this reflected its strategy of prioritizing markets and business segments, with the company also able to boost prices.
Sales of premium and big tyres, in particular for SUVs, helped improve the company’s performance, as did a drop in costs for raw materials from peaks hit in 2022.
Operational profits in the tyre segment hit a record 3.6 billion euros, but net profits dipped 1.3 percent to 1.98 billion euros.
The company also returned to generating free cash flow, 3.0 billion euros in 2023, after having burned through cash in 2022.
For 2024, the company said it expects global markets to remain stable and that it will be able to generate an operating profit of 3.5 billion euros.
It announced a share buyback program worth up to 1.0 billion euros over 2024 to 2026.
