Michelin couv courteGB

Prospects for 2005
In 2004, in a challenging economic environment, Michelin
pursued the strategy it has adopted over the past few years:
high-quality growth, improved profitability and a strengthened
financial structure.
In 2005, Michelin will continue to operate in an environment
combining positive and negative factors:
• On the upside, tire markets are expected to grow in line with
their long-term trend: up by between 2% and 3% in developed
economy markets and by between 8% to 10% in
emerging markets. Given that the first six months of 2004 was
characterized by an exceptional growth, the performance in
the first half of 2005 will appear in an unfavourable light
when compared to the previous year period.
• On the downside, raw material costs are expected to continue
to rise. Michelin expects the rise to be even greater than in
2004, somewhere near 13% over the year, at constant
exchange rates, mainly due to the strong increase in the price
of steel and synthetic rubber.
Despite the negative economic conditions and expected cost
increases, Michelin will continue to strive, more than ever, to
improve its ground clearance, by continued internal structural
improvements and by ensuring that it maintains its ability to
seize the best opportunities for growth.
The Group is confident in its ability to post a performance at
least on par with that of last year’s.
Strategy • Fundamentals • Businesses • Résultats Earnings
Prospects
50•51