According to the mid-year report released on July 25, 2013 by the French tire manufacturer Michelin Group, in the first half of 2013, due to the decline in sales due to the sluggish external market and the increase in investment expenditure due to internal structural adjustments, the Group’s net profit fell sharply, but the annual results It is still expected to remain stable and in line with the established goals.

The financial report showed that in the first half of this year, Michelin sales were 10.159 billion euros (about 13.4 billion U.S. dollars), a year-on-year drop of 5%; operating profits were 1.153 billion euros (1.5 billion U.S. dollars), down 12.7% year-on-year; net profits were 507 million euros (6.7%) Billion U.S. dollars), a year-on-year decrease of 44.6%.

The financial report also showed that in the first half of this year, Michelin tire sales fell by 1.5% due to the weak market, especially the European auto market.

The market is expected to improve in the second half of the year and tire sales are expected to grow moderately.

Sunard , president of the Michelin Group, said that the Group’s performance for the first half of the year was in line with the target and continued to make progress in the implementation of the medium-term structural adjustment plan. He said that Michelin will achieve its scheduled operational goals in 2013, maintain stable operating profits, return the capital over 10%, and generate positive free cash flow.

Founded in 1889, Michelin currently has sales offices in more than 170 countries and regions. It produces 180 million tires and 10 million maps and guides annually. In 2012, its sales reached 21.474 billion euros (28.84 billion US dollars). The profit reached 1.571 billion euros (2.08 billion US dollars).

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