Premium tires, mining lift sales at Michelin

Clermont-Ferrand, France – Up-trending OE demand, a sustained rebound in demand for mining tires and a “highly favourable” price mix have helped Michelin register a 5% year-on-year rise in third-quarter sales to €5 billion.

For the three months to 30 Sept, volumes rose 1% during the quarter and 2.8% for the first nine months – the latter trend led by early dealer-buying in the first quarter and a continued upturn in mining tire sales throughout the period.

Net sales for the first nine months of the year stood at €16.4bn, up 6% compared to the previous year, the French tire-maker results published 20 Oct also show.

For the first half-year, Michelin’s operational income remained flat at €1.39 billion compared to €1.40 billion in 2016. Increased profitability achieved through competitiveness plans was offset by high inflation rates, it also noted.

The company did not provide earnings figures for the third quarter of 2017.

In terms of sales breakdown, Michelin reported growth in every segment, with a significant improvement in speciality tires, including earthmover, farm, and aircraft tires. The segment posted 18.4% growth in sales at €2.5 billion for the first nine months of the year.

Another area where Michelin saw significant hikes was in the premium passenger car tire segment –18-inch and bigger – where the company posted a 21% growth in volumes.

“A successful premium strategy,” said Michelin had delivered continuous market share with its price premium being 10% higher than premium competitors.