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Michelin pledges extra cost cuts after full-year profit decline

French tire maker Michelin pledged on Tuesday to step up cost-cutting efforts after unveiling an 8.5 percent profit decline for 2014 on sales that missed its own estimates.

Net income fell to 1.03 billion euros ($1.17 billion) last year, Michelin said in a statement, as revenue dropped 3.4 percent to 19.55 billion, posting declines at all three major divisions.

The profit number fell short of the 1.3 billion euros expected by analysts, according to Thomson Reuters SmartEstimates based on 17 analysts' forecasts.

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Sales volumes rose 0.7 percent, less than the company's October forecast of a 1-2 percent gain.

Michelin said the benefit of existing cost-cutting measures had been offset by production cost inflation that sucked an additional 256 million euros from earnings last year.

"The competitiveness plan will also be accelerated," chief executive Jean-Dominique Senard said, pledging 1.2 billon euros of savings in the 2012-2016 period - an increase of 200 million euros from the previous target.

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