Michelin (EPA:MICP) (MGDDY) stock popped over 7% in Paris after the tire maker posted better-than-expected total segment operating income for 2023 and said it would buy back shares.
The company reported a net profit of €1.98 billion ($2.14 billion) for 2023, slightly below the €2 billion recorded the previous year, and in line with consensus estimates.
Sales experienced a marginal decline of nearly 1%, totaling €28.34 billion for the year, and below the €28.51 billion expected by analysts.
Michelin’s total segment operating income rose to €3.57 billion, marking a 5.2% increase year-over-year, and surpassing the forecasted €3.43 billion.
It declared a dividend of €1.35 per share for the year, which represents an 8% increase from 2022.
Looking ahead to 2024, the French tire manufacturer expects an operating income of more than €3.5 billion at constant exchange rates, alongside a reported cash flow of more than €1.5 billion before any acquisitions.
Furthermore, it announced plans to launch a share buyback program, projecting to repurchase up to €1 billion worth of shares between 2024 and 2026.