ERJ staff report (TB)
Clermont-Ferrand, France -- Group Michelin reported a 28.1-percent increase in revenue in the quarter ended March 31 on higher volume sales and increased selling prices.
Michelin's sales advanced to $6.89 billion and the strength of 16.5-percent greater unit sales and a 7.7-percent improvement in the price-mix component, the company said. Michelin attributed some of the sharp volume growth to customers' buying ahead of rolling price increases.
Michelin did not disclose earnings at this time, but said it â€œreaffirms its objective of reporting higher operating income in 2011â€ over 2010 because of its pricing strategy, which should offset about 80 percent of the estimated additional costs this year attributable to higher materials costs.
Michelin's operating income/sales ratio was 9.5 percent last year.
Michelin's speciality businesses - OTR, farm, aircraft, motorcycle tyres, etc. - led the way with a 46.8-percent increase to $1.04 billion. Truck tyres and related distribution activities reported a 32.5-percent sale jump to $2.19 billion, while the consumer tyre businesses achieved 21.2-percent better sales of $3.67 billion.
In the specialty sector, Michelin said demand for earthmover, farm and two-wheel tyres rose â€œsignificantly,â€ whereas aircraft tyre demand was up only slightly.
In truck tyres, demand rebounded strongly against a low market in 2010, and in the consumer tyre segment volumes rose on higher demand for Michelin-brand products and winter tyres.
Looking the market as a whole, Michelin figures show consumer replacement demand globally was up 10 percent in the quarter, with Asia and Europe enjoying 14- and 12-percent growth, respectively. Replacement passenger and light truck tyre shipments in North America were up 7 percent.
OE demand was up 5 percent worldwide, Michelin said, with North America and Europe up 12 and 10 percent, respectively.
Replacement truck tyre demand was up 18 percent in the quarter, led by Europe and North America with 26- and 25-percent growth, respectively. OE demand was up 15 percent, including 80- and 66-percent growth in Europe and North America.
Michelin did not comment on its sales performance by region.
From Tire Business (A Crain publication)
Press release from Michelin
Michelin eyes more price rises as market rebounds Reuters (France)