Michelin sales up globally in Q3

Paris -- Michelin reported 4.9-percent sales growth in the

third quarter on higher selling prices worldwide and increased unit

sales in Europe and Asia.

By contrast, business in North America

continued to lag behind 2005 as replacement tyre demand was sluggish

across the board and passenger original equipment shipments slumped as

well, Michelin said.

The firm did not report earnings at this

time but did say it expects its operating margin before non-recurring

items to be close to 8 percent for the full year, about on par with

last year.

Sales for the three months ended Sept. 30

hit $5080 million on 2.2-percent larger volume and a 4.1-percent boost

from better pricing and product mix. Exchange rate differences offset

the sales gains to a degree. Sales for the nine months were up 5.1

percent to $15.1 billion.

Although North American replacement

passenger and light truck tyre demand remained weak, Michelin said it

monitored a slight improvement in September, especially among

distributors to end-users. While the market as a whole declined,

Michelin said its flagship brands continued to gain market share as its

share of the private and associate brand segment continued to shrink.

While the overall North American markets

were weak, Michelin noted gains of 4.1 and 10.6 percent, respectively,

in the H- V/Z-rated segments through nine months.

Replacement truck tyre demand continued

below last year´s pace, although Michelin said it gained share in the

down market both in new tires and retreads. OE truck tyre demand grew

12 percent in the quarter, pushing the January-September gain to 6.6

percent.

Raw materials costs have eased the past

several months, but Michelin said it still expects its raw materials

bill this year to be nearly $1 billion higher than in 2005.

For the year, Michelin estimates the North

American replacement and OE passenger/light truck tyre markets will be

down by 3.7 and 1.2 percent, respectively, vs. 2005, and the

replacement truck tyre market will fall 3.8 percent below 2005. OE

truck tyre sales should end the year 8.4 percent ahead of 2005.