Michelin expects €100m extra materials costs in ”mixed” markets

Clermont-Ferrand, France – Michelin is expecting a €100-million negative impact from raw materials costs in 2019, according to its 11 Feb annual results statement.

The French tire maker reported a €158-million rise in raw materials costs in 2018.

The annual results release did not provide data on Michelin's total materials costs last year, but the figure stood at €5.2 billion in 2017.

The company also expects currency effects to have a “slightly favourable” impact on operating income this year.

In terms of market outlook, Michelin said it anticipated passenger car and light truck tire markets to be “mixed” in 2019.

The company predicted “modest growth” in the replacement market and “a contraction” in the OE segment this year.

The tire maker also forecast truck tire markets to remain stable overall, despite a decline in demand in China.

Mining, aircraft and two-wheel tires markets are expected to "remain dynamic."