Michelin has posted a drop in third quarter net sales down 5.8% from EUR5.44bn (US$7.5bn) to EUR5.12bn, while nine-month sales also dropped 5.3% to EUR15.3bn.
The tyre manufacturer said passenger car and light truck markets were up except in Eastern Europe, with truck business “rebounding” in Europe, but still uncertain in North America.
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There were nonetheless price increases in countries experiencing currency depreciation, with a “significantly unfavourable currency environment combining the impact of the lower US dollar and Japanese yen, anticipated at the beginning of the year, with the depreciation of other currencies against the euro in the third quarter.”
In light of the outlook for volume growth in the fourth quarter, Michelin is maintaining its full-year objective of stable volumes in an environment shaped by recovering, yet still weak demand in mature markets and expanding demand in new markets.
Faced with a currency environment that has deteriorated since the summer, Michelin said it should experience a more deeply negative currency effect than was expected at the beginning of the year.
As a result, the Group is aiming for a year-on-year increase of around EUR150m in operating income before non-recurring items, excluding the currency effect.
Michelin in Paris and Clermont Ferrand was not immediately available, but the supplier is expected to comment later.
