Clermont-Ferrand, France – French tire-maker Michelin has announced a 10% rise in sales in the three months ended 31 March, with a 7.3% increase in volumes.
In a 20 April statement, the company said sales rose to €5.6 billion, due in part to replacement demand growth ahead of price increases.
In early February, Michelin announced price increases of up to 8% for the passenger car & light truck, truck, earthmover, agricultural and two-wheel vehicle tire. The price rises will be effective by the end-April 2017.
The company observed a rebound in mining tire demand, helping it lift first-quarter volumes by 7.3%. Early dealer buying ahead of price increases also pushed volumes up.
Sales of 'speciality’ tires, including earthmover, agricultural, two-wheel and aircraft tires saw the biggest rise in the three-month period, with a 15% increase to €848 million.
Passenger and light vehicle tire sales increased by over 10% to €3.2 billion, while truck and bus tires rose 6% to €1.5 billion in the first quarter.
As for 2017 guidance, Michelin said it expected tire markets to “track the trends observed in late 2016, in particular with the upturn in mining tire sales.”
For Michelin, it added, most of the growth will be concentrated in the first six months, due to the early buying already occurring ahead of the price increases.
The French tire maker said it would continue to ‘manage prices agilely’ in the face of higher raw materials costs.
The costs, it added, will have a “currently estimated” impact of approximately €900 million over the full year.