Michelin has posted like-for-like sales up 1.3% in the first nine months of 2019, in an environment which it says “deteriorated sharply” during the period.
Volumes declined by 0.8% in the first nine months of 2019, with in particular a contraction in Automotive tyre volumes, in line with the markets.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
“In response to a market downturn that was sharper than expected, particularly in the Truck segment, the Group is continuing to improve the competitiveness of its operations, carefully manage its prices and strengthen its positions in the fastest growing segments and businesses,” said Michelin CEO, Florent Menegaux.
“In these challenging times, I would above all like to commend all our teams for their engagement and hard work in limiting the impact of this unfavourable environment.”
Guidance confirmed:
In 2019, Passenger car and Light truck tyre markets are expected to decline by 1%, as the modest 1% growth in the Replacement segment fails to offset the steep 6% contraction in the Original equipment segment.
Truck tyre markets are expected to weaken more quickly in the fourth quarter, to end the year down 4%. Speciality tyre markets will probably remain stable over the full year, as sustained demand for Mining and Aircraft tyres helps to cushion the sharp contraction in the Agricultural and Construction markets.
The full-year impact of raw materials costs and customs duties is estimated at around a negative EUR100m (US$111m).
In this scenario, Michelin confirms its guidance for 2019, with volume growth in line with global market trends.
