Buy custom Likely to get worse before it gets better
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| Topic: |
Business
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| Number of pages / Number of words: |
16 / 4373 |
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(Readers with an interest in branding and social
trends will be interested to chart the development of Bibendum’s girth over
the years. The Michelin Building in London’s South Kensington has magnificent
windows depicting his former bibulous, cigar smoking persona —
he has become a lot slimmer recently...
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By type of vehicle, Michelin’s business
is split roughly 50/50 between personal use tires and the truck markets
(see Exhibit 70). Truck tires, once the higher-margin of the two businesses,
has started to see profitability being eroded (see Exhibit 71).
Exhibit 70 Michelin: Profit Contribution by Segment Exhibit 71 Michelin: Operating Margin by Segment
?(200)
?0
?200
?400
?600
?800
?1,000
?1,200
?1,400
?1,600
1999 2000 2001 2002 2003 2004 2005
? Million
Other Personal Use Vehicles Truck
53%
38%
8%
(2)%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
1999
2000
2001
2002
2003
2004
2005
2006E
2007E
Personal Use Vehicles Truck Other
Source: Corporate reports and Bernstein analysis...
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General points of the essay
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