Michelin has recorded first-half net income down 8% to EUR844m (US$940m), with volume falling 0.9%.

“In highly volatile markets, the Group demonstrated its ability to protect its margins by tight price steering and by rigorously implementing its competitiveness plan,” said Michelin CEO, Florent Menegaux.

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“It also benefited from strong contribution from its recent acquisitions. In this persistently uncertain business environment, the Group pursues its competitiveness initiatives, its firm pricing policy in order to maintain its leadership in its tyre businesses, and to continue the deployment of its growth strategy.”

Guidance confirmed:

In 2019, Passenger Car and Light Truck tyre markets are expected to decline by 1%, as modest 1% growth in the Replacement segment fails to offset the steep 4.4% contraction in the Original Equipment segment.

Truck tyre markets are expected to decline more quickly in the second half, to end the year down 2%. Mining and aircraft tyre markets should continue to expand, offsetting the steep drop in agricultural tyre markets and in Original Equipment demand in construction tyre markets.

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The full-year impact of raw materials costs and customs duties is estimated at around a negative EUR100m, as forecast.

In this scenario, Michelin confirms its guidance for 2019, with volume growth in line with global market trends; segment operating income exceeding the 2018 figure at constant exchange rates and before the estimated EUR150m contribution from Fenner and Camso; and structural free cash flow of more than EUR1.45bn.