Michelin will be hit by costs of EUR150 million in its fourth-quarter accounts because of falling sales, the French tyre company said today (22 December).
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“November saw a sharper month-on-month decline in demand for tyres in all European, North American, Asian and South American markets. In response to this situation, Michelin has cut back significantly on operations in most of its plants worldwide,” the company said in a statement.
The decision, stemming from the current economic environment, it said, will lead to the exceptional costs of nearly EUR150m due to under-utilisation of capacity.
“In this way, Michelin is taking the necessary steps to effectively manage inventories and maintain its flexibility moving into 2009,” the company concluded.
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