Michelin, the French tire maker, has announced that it will be buying back shares following its report of mostly flat earnings for the year 2023. Despite a decline in sales of nearly 1% to EUR28.34 billion, Michelin managed to record a net profit of 1.98 billion euros ($2.14 billion) for the year, slightly lower than the previous year’s figure of EUR2 billion.
Although these results are in line with expectations, the company’s operating income for 2023 decreased by 12% compared to the previous year, amounting to EUR2.65 billion. However, Michelin attributed this decline to unfavorable market conditions, which were partially offset by a growth of 10% in non-tire sales.
Looking ahead to 2024, Michelin has set ambitious targets of achieving more than EUR3.5 billion in segment operating income (at constant exchange rates) and more than EUR1.5 billion in reported cash flow before acquisitions. Additionally, the company plans to initiate a share buyback program that could potentially be worth up to EUR1 billion over the period of 2024-2026.
In a positive move for investors, Michelin has also declared a dividend of EUR1.35 for the year, representing an 8% increase compared to 2022.