Michelin: Net sales up 3% in Q3 2017
Reporting its performance during the third quarter of 2017 and the first nine months of the current financial year, Michelin has announced net sales of 5.34 billion euros for the three months to 30 September 2017. This result represents a 3.0 per cent year-on-year increase in net sales and includes a favourable 5.0 per cent price-mix effect and 1.0 per cent growth in volumes.
During the nine months until 30 January, net sales were up 6.0 per cent year-on-year to 16.39 billion euros. This result was supported by a favourable 2.6 per cent price-mix effect and 2.8 per cent growth in volumes; within the 18-inch and larger rim diameter segment, volumes increased 21 per cent. Acquisitions added 0.6 per cent to growth.
2017 guidance confirmed
In the final months of 2017, regardless of prevailing winter weather conditions, replacement markets are expected to gradually move back in line with their long-term trend. Demand for original equipment tyres should continue to expand in the truck, earthmover and agricultural segments, with slower growth in the passenger car and light truck business. Sales of mining tyres, which have been rebounding since late 2016, should also continue to enjoy strong growth.
In the second half, changes in the price mix and raw materials costs are expected to have a net positive impact, as announced. For the full year, the impact of higher raw materials costs is currently estimated at approximately (800) million euros.
For the full year, Michelin confirms its targets of volume growth in line with global market trends, operating income from recurring activities exceeding the 2016 figure, excluding the currency effect currently estimated at between (110) million and (120) million euros, and structural free cash flow of more than €900 million euros.
Additional information about Michelin’s Q3 2017 performance can be found in the Tyrepress.com company profiles and reports section.