PARIS, Jul 27 (EUROPA PRESS) –
Michelin recorded a net loss of 137 million euros in the first six months of the year, entering ‘red numbers’ compared to profits of 844 million euros in the same period of 2019, according to data published Monday by the French company.
The company explained that the coronavirus crisis caused a “collapse” of the market and a contraction in sales, although it indicated that the measures adopted, mainly aimed at reducing costs, reduced the impact of the pandemic on business.
The company’s president, Florent Menegaux, said that in the face of this “unprecedented” crisis, the group took the “necessary” measures to ensure the sustainability of its operations and to mitigate the financial impact of the economic slowdown.
The tire manufacturer closed the first half of 2020 with a revenue volume of 9,357 million euros, representing a decrease compared to the 11,781 million euros invoiced in the same months of the previous year.
At the end of June, the firm posted an operating profit of 177 million euros, which translates into a sharp decrease of 86% in the comparison with the result recorded in said months of 2019.
Between the first half of last year and this year, the French multinational’s workforce stood at 124,000 people in all the markets in which it operates, a 1.1% cut in the year-on-year comparison.
For the remainder of the year, Michelin anticipates that tire demand will be affected by the economic downturn caused by the Covid-19 pandemic. In this environment, the company plans to close the year with a free cash flow of around 500 million euros and an operating profit per segment of more than 1,200 million euros.