Michelin has posted first-half revenue up 8.5% to EUR10.5bn (US$11.6bn), with operating income up 9% to EUR1.3bn or 12% or net sales.
Volumes rose 2.4%, outperforming markets, while Michelin maintains passenger car and light truck tyre sales “clearly outpaced the market.”
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Truck tyre and speciality business volumes were slightly better than their markets.
The supplier also recorded faster growth from quarter to quarter, in uneven markets which were strong in mature economies and sluggish in the majority of new markets.
Changes in price mix and raw materials prices had a net negative effect, reflecting in particular the contractual price adjustments under raw materials-based indexation clauses and managed price repositionings.
“Michelin achieved strong growth in the first half of the year by leveraging its broader portfolio of solutions, by expanding access to customers and by capturing the rising demand in its traditional markets,” said Michelin CEO, Dominique Senard.
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By GlobalData“The success of our most recent lines, like the Michelin CrossClimate and the new BFGoodrich tyres, as well as our strengthened positions in the original equipment segment, confirm the importance of innovation for the Group’s growth.
“Combined with the expected deployment of the competitiveness plan, Michelin can confirm its full-year guidance.”
With tyre demand expected to remain on an upward trend in mature regions but more challenging in new markets, Michelin’s objective for the second half is to pursue the growth trends observed in the first six months of the year.
Changes in price mix and raw materials prices are expected to have during the full year a net negative effect on the businesses subject to contractual raw materials indexation clauses and a net neutral effect on the remaining businesses.
The Group confirms its target of delivering an increase in operating income before non-recurring income excluding the currency effect, a return on capital employed in excess of 11% and structural free cash flow of more than EUR700m, while pursuing a capital expenditure programme totalling around EUR1.8bn.
