Michelin posts 20% growth in sales for first three quarters
27 Oct 2022
Volumes dip but passenger car tire revenues up 19%, truck & bus tires 20% higher...
Clermont-Ferrand, France – Michelin Group has reported a strong growth in sales for the first nine months of the year, despite a decline in volumes due to weak demand in China and a plant closure in Russia.
The French group saw a 20.5% year-on-year increase in sales to €20.7 billion during the first nine months, driven mainly by a 14% positive effect of price mix.
Volumes were down 2.4% year-on-year with a €408 million negative effect on sales.
Michelin linked the decline in volumes stemming to the shutdown of operations in Russia since March and weak demand in China, particularly during the country’s widespread lockdowns in the second quarter.
Apart from those, the group said, “volumes held firm year-on-year.”
Non-tire sales were up 22% year-on-year led by “robust gains in Fenner and fleet management businesses.” Overall, the non-tire unit contributed €185 million to group said.
“Favourable currency effect”, due mainly to the strong dollar, helped sales grow 6.5%, or by €1.1 billion, over the nine-month period.
Passenger car tire sales rose 19% year-on-year to €10.2 billion, while truck & bus tires were up 20% at €5.4 billion.
Speciality products, including two-wheeler, farm, aircraft and mining tires, reported sales growth of 24% to €5 billion over the period.
"In a highly inflationary environment, 2022 full-year guidance is confirmed for operating income and adjusted for structural free cash flow," said Michelin withtout offering further details.
The French group said it delivered sales growth and is "steering operations to ensure adequate inventory levels", in a market environment shaped by "continuing operational disruptions, widespread inflation and limited visibility as to future demand."