As the mining sector’s demand for tyres increases, Michelin’s earnings are set to get a boost
Demand for outsize earthmover tyres stemming from the mining sector is set to boost France's Michelin this year.
The French tyre maker said it made a 4.5 per cent gain in operating profit for 2016.
The full-year operating margin lifted to 12.9 per cent from 12.2 per cent as operating income increased to €2.69bn (£2.28bn).
Despite a 2.1 per cent increase in sales volume, revenue fell 1.4 per cent to €20.91bn on weaker pricing. Net income jumped 43.5 per cent to €1.68bn.
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Global demand for truck and so-called specialty tyres is set to grow in the year ahead, according to Michelin, and earthmover tyres, which have a high margin, are rebounding after a third straight year of declines.
Chief executive Jean-Dominique Senard said 2017 will be "another year of growth in line with the group's 2020 objectives."
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