Michelin has closed its production facilities located in European countries most affected so far by the coronavirus pandemic for “at least” a week.
When presenting its 2019 results, the Group issued its guidance for 2020 excluding the systemic effects of the COVID-19 crisis.
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“Now the global economy is in the midst of a systemic crisis, the Group’s 2020 guidance is no longer relevant, without any possibility at present of assessing the potential impact,” said a Michelin statement.
“The Group is taking all the initiatives required to attenuate as much as possible the negative consequences of the crisis on segment operating income and free cash flow. In addition, the Group has the sources of financing in place to deal with the uncertainty surrounding the crisis.
“The Group will update its annual tyre market forecast when it releases its first-quarter revenue figures.”
Tyre market data as of end-February 2020, released by the Michelin Group, show the initial impact of the COVID-19 public health crisis, with the global Passenger car and Light truck tyre market down 9% year-on-year and the Truck tyre market down 16%.
