Paris – Michelin has confirmed its 2019 targets of volume growth in line with the global market.
The passenger car and light truck tire markets are expected to be mixed, with modest growth in the replacement segment and lower OE demand, Michelin said in a 24 April first quarter report.
The truck tire markets look set to contract slightly, while the mining, aircraft and two-wheel tire markets should remain dynamic, Michelin added.
Additionally, the company expects operating income to exceed the 2018 figure at constant exchange rates, before the estimated €150 million contribution from Camso and Fenner.
Based on April 2019 exchange rates, Michelin expects the currency effect to have a “relatively favourable” impact on segment operating income.
The impact of raw materials costs is currently estimated at around a negative €100 million, mainly affecting first-half results.
“We once again demonstrated the resilience afforded by our group’s exposure to different economic sectors, allowing us to confirm our 2019 guidance,” said outgoing CEO Jean-Dominique Senard.