Michelin maintains guidance as first quarter sales increase 19%

Clermont-Ferrand, France – Group Michelin has maintained its financial guidance for the year 2022, as it expects to see growth in markets despite a “highly uncertain environment.”

The French group said it anticipated growth to be at the low end of the initially indicated ranges: 0% to 4% in passenger car and light truck tires, 3% to 7% in truck tires (excluding China) and 6% to 10% in the specialty businesses.

Barring any increase in systemic impacts, Michelin said in a 26 April statement, that it expected full-year segment operating income to exceed €3.2 billion, compared to €2.9 billion reported last year.

Over the first quarter of the year, the French group reported a 19% year-on-year increase in sales to €6.5 billion.

The improvement, said Michelin, was achieved as existing operational disruptions and inflationary pressures were exacerbated by the conflict in Ukraine and the resurgence of Covid-19 in China.

Michelin linked the growth largely to the sharp 11.9% gain from higher tire prices and a 3.4% positive currency effect.

Furthermore, the non-tire business also saw a 12% increase in sales over the three-month period, the group added.