Although unit volumes for Michelin tyres were 1.4 per cent higher in the first nine months of 2016 thanks to strong sales in the passenger car tyre segment, the French manufacturer reports that momentum slowed during the third quarter of the year. Demand for car, light commercial and truck tyres was flat to slightly down in mature markets and mixed in emerging markets. Net sales for the quarter amounted to €5.18 billion, 2.5 per cent lower than a year earlier.
Passenger car and light commercial vehicle tyre unit volumes grew two per cent year-on-year in the three months to 30 September 2016 on the back of growth in emerging markets, excluding Russia and Brazil. Net sales for the quarter were down 0.5 per cent to €2.96 billion.
Truck tyre volumes decreased three per cent in Q3 2016 due to lower original equipment unit sales in the Americas and a decline in aftermarket sales in Asia. Third quarter net sales fell 4.6 per cent to €1.53 billion.
Continued growth in unit sales for two-wheel tyres (in Europe, the USA and Japan) and commercial aircraft tyres within Michelin’s specialty business was unable to deliver overall growth for this segment, as it was weighed down by reduced demand for mining, earthmover and agricultural tyres. Michelin hasn’t published quarter volume figures for the specialty business, however it expects volumes to be down four to five per cent for the full year. Net sales for the three months to 30 September 2016 were, €682 million, 5.9 per cent lower year-on-year.
For the full year, Michelin has confirmed 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 €800 million.
Further information about Michelin’s financial performance in the third quarter and first nine months of 2016 can be found here.
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