Michelin sales up 6 per cent in the first nine months of 2012
Michelin has reported sales of 16.142 billion euros in the first nine months. The figure, which represents a 6 per cent increase compared with the same period last year, comes despite slow demand and continued pressure in the economic environment especially in mature markets. However, despite the increase, sales volumes were down 6.7 per cent, with the overall improvement being explained by product mix and raw materials-related price increases.
As a result, Michelin confirmed its guidance for full-year 2012 results and continues to expect a clear increase in operating income before nonrecurring items, with a 5 per cent decrease in fullyear sales volume. In addition the company expects a raw materials tailwind of around 200300 million euros in the second half of the year.
Net sales in the passenger car and light truck segment stood at 8.298 billion euros up 4.8 per cent compared with the first nine months of 2011.
Ninemonth net sales in the Truck Tires and Related Distribution business amounted to 5.044 billion, up 1 per cent from the year before. According to Michelin, the increase was primarily led by the price and mix effects and by the tight management of unit margins. Sales volumes were down 12.4 per cent compared to first 9 months 2011. But these are said to have been slightly but steadily improving since the end of 2011.
Specialty sales up 20 per cent year-on-year
The Specialty businesses remains a very successful part of the business, ending the first nine months of 2012 at 2.8 billion euros, up 19.9 per cent yearonyear thanks to the 4.8 per cent rise in volumes and the increase in prices (despite their contractual adjustment on 1 July in line with raw materials costs). Earthmover tyre consolidated net sales rose significantly over the period, apparently reflecting volume gains, the favorrable currency effect and “the application of contractual indexation clauses.”
Agricultural tyre sales ended the period up “significantly” thanks to price increases that passed along higher raw materials costs.