Michelin shares drop on low European tire demand
ERJ staff report (BC)
Paris - Shares in Michelin & Cie and Continental AG fell the most in more than three months, reports Mathieu Rosemain of Bloomberg, after the French company said demand for tires slumped across Europe last month.
Michelin shares declined as much as 4.10 percent, the biggest intraday drop since 16 October, and were down 2.3 percent at 13:20 on 22 January in Paris. Continental fell as much as 3.8 percent, the most since 16 October, and was down 1.2 percent in Frankfurt.
Sales of tires used in new vehicles fell 16 percent in Europe and 2 percent in North America last month, the Clermont- Ferrand, France-based manufacturer said yesterday on its website. Sales of replacement tires dropped 7 percent in Europe and 8 percent in North America, Michelin said.
Auto suppliers are feeling the pinch from the economic downturn in Europe. Car sales in December fell 16 percent in the region, the steepest monthly decline in more than two years, according to the European Automobile Manufacturers' Association.
â€œProduction is at a standstill at car and truck producers,â€ said Hans-Peter Wodniok, an analyst at Fairesearch GmbH & Co.
Volkswagen AG's Audi brand halted production before Christmas and resumed it only around 10 January, according to Wodniok, suggesting January will also be â€œvery very slow.â€
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Michelin sales statistics