French company Michelin, specializing in the manufacturing of car tires, saw its profits decline to $758.2 million at the end of last year, compared to $2.09 billion in the same period in 2019, marking a decrease of approximately 63.87% due to the negative impacts of the coronavirus pandemic.
According to the company's financial statements, sales began to drop to about $24.8 billion, compared to approximately $29.27 billion at the end of 2019, reflecting a decline of 15.2%. Operating income fell to $1.69 billion by the end of last year, down from around $3.59 billion in 2019, a decrease of 52.7%. The total amount spent by the company to protect workers from the negative impacts of the COVID-19 pandemic through preventive measures reached approximately $118.8 million by the end of 2020.
The company stated that the business environment for 2021 remains uncertain due to the pandemic's repercussions. Michelin had anticipated growth ranging from 6% to 10% in the markets for passenger car and light truck tires by the end of the current year, and estimated that heavy truck tire markets would grow about 4% to 8% by the end of 2021. In another announcement, the group revealed plans to expand its operations into new areas through investments in 3D metal printing, hydrogen mobility, and new recycling technologies.
Michelin's shares, listed on the Euronext stock exchange, increased by 0.86%, with the share price reaching approximately $142.7.
