Michelin revenue up 10% in first nine months despite lower unit sales

Paris — Michelin Group reported a 10.4% increase in sales revenue for the nine months ended 30 Sept despite lower sales volumes in the consumer and commercial tire segments.

Group sales rose to €17.9 billion over the period, significantly helped by the speciality tires segment, which covers farm, aircraft and mining tires, Michelin reported 25 Oct.

The tire maker did not disclose earnings for the period, but said it expected operating income to exceed the 2018 figure at constant exchange rates and before the estimated €150 million earnings contribution from mid-2018 acquisitions Fenner plc and Camso Inc.

The full-year impact of raw materials costs and customs duties is estimated at around €100 million.

For the full year, Michelin said it expects global industry sales of passenger/light truck tires and truck/bus tires to fall 1% and 4% short of 2018, respectively.

For the nine-month period, Michelin reported a 3.7% increase in sales in the automotive and related distribution business to €8.6 billion despite a 7% drop in OE-related business.

The road transportation (truck/bus tires) and related distribution business posted a 2.4% gain in sale to €4.8 billion despite a 2% decline in unit shipments. 

Here, the price-mix effect was "robust," Michelin said. reflecting the business' “selective focus” on segments capable of creating value.

The speciality businesses and related distribution segment's sales shot up 39.7% to 4.4 billion, driven by the first-time consolidation of Camso and Fenner.

Within this segment, Michelin reported sales of mining tires "maintained their momentum" due mainly to the group’s positions in surface mining segment, its pricing strategy and the growth of its service operations.