Michelin has posted third quarter net sales down 2.5%to EUR5.2bn (US$5.7bn), while nine-month net sales dropped 2.1% to EUR15.5bn.
Volume was up 1.4% in the first nine months, outperforming markets, while in the third quarter, passenger car, light truck and truck tyre demand was flat to slightly down in mature markets.
Demand was mixed in new markets, with sustained strength in the Chinese passenger car/light truck tyre segment and a sharp contraction in South America.
Speciality tyre markets were shaped by a slowdown in the agricultural segment, a decline in demand for original equipment earthmover tyres and continued destocking by mining companies.
“Over the last three months of the year, markets are expected to remain mixed, in line with the trends observed in the first nine months,” said a Michelin statement. “In this market environment, given the sustained deployment of the Group’s pricing strategy and the estimated EUR550m positive impact from raw materials costs, the price-mix/raw materials effect is expected to add more than EUR150m to operating income for the year.
“For the full year, Michelin is confirming its targets of volume growth outpacing global markets, an increase in operating income from recurring activities at constant exchange rates, and structural free cash flow of more than EUR800m.”
In the first nine months of 2016, the global original equipment and replacement passenger car and light truck tyre market rose by 2% in the number of tyres sold.