Michelin's Q1 sales down on weak European market
ERJ staff report (BC)
Clermont-Ferrand, France – Tire maker Michelin has reported sales of €4.9bn for Q1 2013, an 8.1 percent drop from the year-ago period.
The company said: "Market environment was weak in Europe in passenger car and light truck tires, disappointing in North America and expanding in the new markets.”
OE and replacement tire volumes in Europe fell 11 percent and 9 percent, respectively, while north America gained 1 percent year on year in OE sales and lost 2 percent in replacement tires.
Asia and South America posted single-digit percentage gains in both markets, while Africa and the Midle East lost 8 percent in OE but gained 4 percent in replacement tire sales.
In Asia (excluding India), demand rose by 5 percent overall, with strong gains in China (up 15 percent) and Southeast Asia (up 29 percent).
On the other hand, the Japanese market dropped 18 percent following the late 2012 termination of government car buying incentives, Michelin said.
The firm said its full-year 2013 outlook remains positive: "The decline in raw materials prices should have around a €550m favourable impact on full-year operating income. If so, this would amply exceed the around €300m price-mix impact."
Michelin’s €2bn capital expenditure program is designed to support growth objectives by adding production capacity in the new markets, and to improve competitiveness in mature markets.