Michelin couv courteGB

Strategy
● The Group is implementing a growth
strategy focused on the most technical
segments in each market, where Michelin
is very often the leader. It is developing
strong partnerships with manufacturers.
● In Earthmover, Michelin has bright
prospects for very large tires due to the
low degree of radialization in the fork-lift
and earthmover equipment markets.
● In the Agricultural sector, the Group is
developing solutions that enhance crop yields
while preserving the soil.
● In 2-Wheel, Michelin is strengthening its
positions through offering quality combined
with technical innovation.
● In Aircraft, Michelin contributes to
enhanced safety through the introduction
of radial technology.
● The reorganization of the Wheel
business was conducted smoothly
and in a timely fashion.
World No.1
in surface mine Earthmover
radial tires
Europe’s No.1
in Motorcycle and Agricultural tires
World No.1
for Aircraft radial tires
Strategy • Fundamentals Businesses Earnings
Specialty tires
Sales and
earnings up sharply in 2004
• Volume sales of Specialty Tires rose 8.3% against a backdrop
of overall market expansion. Thanks to strong earnings
from Earthmover, Agricultural and Motorcycle tires,
the segment’s operating margin was up sharply.
Sales of tires for heavy earthmovers grew very sharply.
Demand for tires for agricultural equipment proved to be better
than forecast in Europe and the United States. The market for
motorcycle tires was particularly buoyant in North America,
growing by 10%. In Aircraft, however, the euro’s appreciation
put a damper on Michelin sales.
• Among the highlights, the Group broke its production
records in Earthmover tires and reported clear successes
with two innovative products: Michelin XeoBib based on
new Ultraflex low pressure technology in the agricultural
sector and the new Michelin Pilot Power for motorcycles.
For the next generation of Airbus, A 380, Michelin developed
very high resistance tires boasting radial technology.
Production of Earthmover tires sets
a record
The Earthmover (large vehicles used in mining, construction,
materials handling, etc.) markets grew by double digits in
Original Equipment. In Replacement tires demand also was
strong, though less so in Europe. Michelin broke all of its
production records, but as was the case with the industry,
this was not enough to fully satisfy the exponential demand
in the mining market, Original Equipment and growing
segments like construction, port vehicles and materials
handling equipment in general.
Sales rose 10% in volume terms, but were eroded by the
weakening dollar. Since 60% of Group sales were made in
dollars, while 60% of the production is located in Europe.
Price increases were needed owing to the raw material
price, especially for natural rubber. Most of the contracts
with the world’s main manufacturers of construction
machinery and mining vehicles were renewed for 2005,
with price increases linked to inflation and external costs.
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