Clermont-Ferrand, France – Michelin has seen an ‘upturn’ in demand for tires in the third quarter, following a steep decline caused by the Covid-19 pandemic in the second quarter of the year.
Group sales fell 16.8% year-on-year to just under €15 billion for the first nine months of the year, with a decline of 5% in the third quarter, said Michelin 22 Oct.
Demand for passenger car and light truck tires fell 16.2% over the first nine months to €7.2 billion, with the decrease slowing down in the three months to end of September.
Nine-month volumes for the segment fell 17% year-on-year, with a 6% decline in the third quarter “demonstrating a robust quarter-on-quarter upturn.”
Truck tire markets were down 20% during the nine-month period with sales coming in at €3.8 billion.
In terms of volumes, the segment saw a strong original equipment (OE) demand in China and Asia, which limited third-quarter decline to 6%.
In the speciality tire businesses, which include two-wheeler, mining, farming and aircraft tires, Michelin noted a recovery in agricultural tire sales and a rebound in the two-wheel segment.
The improvements, it said, helped offset a slowdown in the mining business. "which felt the effects of the [Covid-19] health crisis with a lag of a few months."
Michelin also noted a 1.7% currency impact on sales, which it said was offset by improvements in price-mix and share gains in the 18-inch and larger tire market.
The French group did not disclose details of its earnings development.