Tire manufacturer buys a fifth: Michelin goes into workshop chain ATU

02/13/2018

Tire manufacturer buys a fifth Michelin goes into workshop chain ATU

DPA

Already in French hands: Now there is next to the French Mobivia with the tire manufacturer Michelin a second French shareholder of the workshop chain ATU

The French tire manufacturer Michelin Show stock market chart has invested one fifth of the German workshop chain Auto-Teile-Unger (ATU) and spent 60 million euros. This was announced by the French on Monday evening. Further acquisitions would be considered, it is said.

2016 had that French family company Mobivia the stumbling ATU taken over. ATU operates around 600 workshops in Germany, Austria and Switzerland. Now, more Michelin tires are to be sold to customers in the 577 German workshops. “The entry of Michelin will strengthen our development,” said ATU boss Jörn Werner.

Higher raw material costs and the corporate restructuring burdened Michelin last year. Thanks to price increases and more tires sold, the Continental rival increased sales by 5 percent to 22 billion euros, as the group announced on Monday evening in Cermont-Ferrand.

Michelin increases sales, profits fall back

Operating income declined by just under 6 percent to € 2.6 billion, as price increases could not fully offset higher costs and less favorable exchange rates.

Below the line, net profit rose by 1.6 percent to 1.7 billion euros – among other things, the Group has further reduced debt and paid less taxes. The dividend should rise from 3.25 euros to 3.55 euros per share.

In the second half of the year, chief financial officer Marc Henry reckons with again higher raw material costs for tire production, which are offset by price increases. However, the strong euro is likely to burden the operating result according to the current state with around 300 million euros. Adjusted for currency effects, it should grow and the volume of tires sold should continue to grow with the market trend.

Rei / Reuters / dpa

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