Michelin posts 9% sales growth in first quarter 

Paris – Groupe Michelin has reported sales of €5.8 billion for the first quarter of 2019, representing a 9.3% year-on-year increase at constant exchange rates.

A robust price-mix and newly acquired businesses led the strong sales “in difficult markets,” the French tire & rubber company said 24 April.

The company noted a “major contribution” to revenue from its recent acquisitions of Camso and Fenner during the first three months of the year.

While volumes were down 0.5% year-on-year, Michelin also benefited from a favourable currency effect of 2.0% during the period.

Within the passenger car and light truck tires segment, Michelin said it maintained market share “in an environment deeply impacted by declining original equipment demand.”

The market, it added, is also slightly declining in replacement markets in Europe.

In the truck tires segment, volume growth remained firm in slightly contracting markets.

Michelin attributed the development to the offering of new service and solutions.

Within its speciality tires segment, which includes mining, aircraft and two-wheel tires, Michelin said its 2019 growth ambitions were “confirmed”.

However, the tire maker said the segment was impacted by ‘supply chain issues in mining tires and the focus on margins in OE for off-road businesses.’