Michelin has unveiled EUR4.9bn (US$6.4bn) of first-quarter 2013 sales, in line with its full-year outlook, but down 8.1%, with a weak passenger car and light truck tyre market in Europe and a disappointing environment in North America.
A Michelin statement noted: “Volume performance reflected: the two fewer business days; the difference in market trends between the mature and the growth regions and a decline in original equipment demand, notably in the earthmover segment.
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Despite the performance, Michelin is confirming stable volumes for this year, while the decline in raw materials prices should have around a EUR550m favourable impact on full-year operating income.
The capital expenditure programme, totalling some EUR2bn, will support Michelin’s growth objectives, says the tyre manufacturer, by adding production capacity in new markets.
In this environment, Michelin confirms its objectives for 2013, when it expects to report stable operating income before non-recurring items, a more than 10% return on capital employed and positive free cash flow.
