The company’s net income dropped to 106 million euro form the 360 million figure posted in 2008. Revenues decrease by 9.8 percent, only reaching 14.8 billion.
Last year, Michelin reduced its global workforce by 7.1 percent to 109,200 employees.
Chief Executive Officer Michel Rollier said Michelin has "improved its major financial metrics, the foundations of its future growth" as it responded to a "historic decline in tire demand, especially in mature economies,"
According to Michelin, car and light truck tire demand saw an abrupt decrease last year, as carmakers cut production and reduced parts stocks, a fall cushioned by government scrappage schemes in the second half of the year. China was the only country to break this trend, as its demand surged 65 percent, making it surpass the U.S. market for the first time in history.
Michelin has had a similar economic situation with the French carmaker Renault by achieving its aim of generating positive free cash flow at the end of the year - the company generated a free cash flow of 1.39 billion euro in 2009, compared to a negative 359 million figure posted a year before.
For 2010, the Michelin has set the same goal, with company officials using an “extreme vigilance” approach for this year. The tiremaker pledged to “maintain cost discipline” in 2010.
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