Michelin couv courteGB

Continued growth in other regions
Radial tire sales continued to rise sharply in South America
and Asia.
• Michelin expanded its network of distributors and
franchisees specializing in retreads in South America and
benefited from the dynamics of economic recovery in the
region, with sales up in Brazil, Argentina and Chile.
• In Asia, Michelin launched its solutions approach in
Japan where it started an around-the-clock repair service in
2004. Business improved in Thailand and Korea, but in China,
the Group’s sales growth was hampered by the sudden
introduction of a law on vehicle overloads. In India, where
the heavy hauling and distribution markets are still highly
fragmented, Michelin began to market radial tires in
partnership with Apollo Tyres.
Brazil
Michelin invested 98 million dollars*
to expand its production of Truck tires
in Brazil by 40%, where it is No. 1
in radial tires.
* The investment will be staggered over the 2004-2006 period.
Strategy • Fundamentals Businesses Earnings
Healthy operating margin
Truck
At 13%, the operating margin has shown a good resistance
to outside pressures. This improvement stems mainly from
the Truck segment’s ability to cut its operating costs and raise
prices to absorb the impact from continuing increases in raw
material costs. Michelin’s plants were able to contain their
production costs while operating at full capacity, and this,
despite strong inflationary pressures in the areas of energy,
payroll costs and fringe benefits. Overhead costs also declined
in 2004.
Michelin is the only manufacturer to retread
its own tire casings to make them just like
new. Michelin RemiX restores new
performance to Truck tires.
India
The Group has begun to sell radial tires
to the Indian market in the framework
of the Joint Venture with Apollo Tyres Ltd,
India’s largest tire maker for trucks
and busses.
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