Michelin sales fall 2.6% on currency changes

Tire Business staff report

Paris, France -- Group Michelin's sales in the first quarter fell 2.6 percent to Euro 4091 million entirely on the effects of currency changes, but company management is still confident the firm can achieve “moderate” net sales growth this year with operating income approaching the 2007 level.

For the quarter ended March 31, Michelin reported unit sales grew 1.1 percent and the firm experienced a 1.7-percent revenue boost from improved pricing.

Michelin said its “trading environment was less supportive than initially anticipated,” with most of the mature countries' tyre markets down, except for original equipment truck tyre shipments in Europe.

By contrast, the company said, the emerging countries' markets posted very satisfactory growth in both passenger/light truck and medium truck tyre segments.

Michelin did not disclose earnings at this time but said raw material costs continued to climb throughout the quarter. As a result, the tyre maker expects to incur nearly Euro 600 million in additonal costs related to raw materials.

To deal with this situation, Michelin said it is intent on pursuing its pricing policy aimed at offsetting external cost inflation.

From Tire Business (A Crain publication)

Press release from Michelin

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