Michelin has recorded first-quarter net sales up 1.4% at constant exchange rates to EUR5.2bn (US$6.2bn).
The supplier nonetheless saw a slight decline in the passenger car, light truck and truck tyre markets, as announced, while OE demand was down impacted by the Chinese and North American markets. Truck tyre demand was “robust” however.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
2018 guidance confirmed:
During the full year, demand is expected to increase slightly in the passenger car and light truck tyre markets and remain stable in the truck sector. The mining tyre market should continue to grow.
The currency effect will remain highly unfavourable throughout the year, with an estimated EUR350m negative impact on operating income from recurring activities (of which -EUR250 million in the first half).
Against more favourable prior-year comparatives, sales volumes will be lifted by the new closer-to-the-customer organisation and a large number of new product launches. The Group will continue to manage prices so as to protect its unit margins in an increasingly competitive marketplace.
Michelin confirms its 2018 targets of volume growth in line with global market trends, operating income from recurring activities exceeding the 2017 figure at constant exchange rates and structural free cash flow of more than EUR1.1bn.
