PARIS (Oct. 25)--Despite a sales slowdown in the third quarter, Groupe Michelin still expects to meet its fiscal 2004 operating goals because of higher selling prices and the effects of an improved product mix.
Michelin's sales in the quarter rose 1.1 percent to $4710 million, as tyre demand growth globally slowed markedly during the period, Michelin said, to more historical rates from "exceptional" growth in the first half. Michelin's sales for the nine months ended Sept. 30 were up 4.6 percent to $14 300 million.
Michelin did not disclose earnings at this time, but said the pricing and product mix effects will continue to help offset raw material price increases.
Regarding its key segments, Michelin said passenger and light truck tyre sales were up 1.2 percent for the nine months, with replacement sales up 3.9 percent and original equipment down 5.1 percent.
Michelin website with announcement