Retail

Michelin Q1 sales fall 2.4%

Posted on April 24, 2014

Group Michelin posted net sales of 4.76 billion euros for the first quarter ended March 31, 2014. That compares to sales of 4.88 billion euros for the same period the previous year.

Based on the exchange rate on March 31, 2014, Michelin recorded net sales of $6.5 billion.

Here’s the sales breakdown, in billions of euro, by tire segment:

Tire sales

1Q 2014

1Q 2013

% change

Consumer

2.52

2.58

- 2.4%

Truck/retread

1.46

1.48

- 1%

Specialty

  .78

  .82

- 5.2%

The company said revenue fell due to the strong euro and weak demand in the passenger, light truck and truck tire markets in Eastern Europe.

In OE consumer tire sales, Michelin said the North American market gained 5% over the period as “buyers continued to replace their aging cars.”  For consumer replacement tires, Michelin said 7% growth in the North American market reflected “higher imports, sustained demand, particularly in Canada, and the competitive environment, especially in the mid-market.”

In OE truck tires, the North American market climbed 6%, with an improved mix thanks to the faster growth in the Class 8 segment. For replacement truck tires, the North American market rose 8% over the period, with a noticeable contribution from the imported tire segment.

Michelin said the global mining industry grew as a whole in the first quarter, but the mining tire market remained on the downward trend observed in the final quarter of 2013, dampened by inventory drawdowns by mining companies.  In the agricultural market, global demand for OE tires softened in mature markets due to the decline in farm machinery sales. The replacement market is recovering in Europe, but remains down in North America.

Outlook for 2014, per Michelin

“With tire demand rising as fast as expected in the first quarter of 2014, except in Eastern Europe, Michelin maintains its objective of around a 3% increase in volumes over the full year.

“The Group aims to improve its gross unit margin, while preserving a positive balance between pricing policy and raw materials costs. The competitiveness plan is being deployed on schedule.

“Against this backdrop, Michelin is confirming its 2014 objectives of 1) an increase in operating income before non-recurring items (at constant exchange rates); 2) a more than 11% return on capital employed; and 3) structural free cash flow of more than 500 million euros along with a capital expenditure program maintained at around 2 billion euros."

Related Topics: Michelin financials

Comments ( 0 )
More Stories
News

Brake Jobs Help Monro's Existing Stores Boost Sales

The fact that overall sales at Monro Muffler Brake Inc. increased in the first quarter of fiscal 2018 is hardly news. The company's aggressive approach to acquisitions helps it continually add to the sales column. But in the latest quarter, Monro's existing, comparable stores helped the bottom line, too. And that's news.  

News

Nexen Explores Partnership Options With an Investment Company

  Nexen Tire Corp. has signed a memorandum of understanding "to explore strategic partnership opportunities" with Mubadala Investment Co. The strategic investment fund has made a direct investment in the tire maker as part of the agreement.  

Zixin Liu, market planning director for Wanli Tire Corp., spoke at the 2017 Shanghai International Auto Show.
Article

Who Is Wanli? Industry Analyst Breaks Down the Chinese Company

Following leaks from South Carolina in early June that Orangeburg County is expecting an investment of $1 billion from a Chinese company named “Wanli,” many in the tire industry wanted to know more details. Chief among them was the question, “Who on earth is Wanli?”

News

DSP Hires Bridgestone Veteran George Kingman

Dealer Strategic Planning Inc. (DSP) has hired George Kingman as the 20 Group’s associate director. Kingman brings extensive experience in sales and store management, productivity improvement and team building to DSP.

After 10 years in operation, DSP has updated its look.
News

DSP Unveils a New Logo

Dealer Strategic Planning Inc. (DSP) has unveiled a new logo for the company. The fresh, storefront design symbolizes the enhanced services DSP is offering to its 20 Group members.

News

Tenneco Extends Struts and Shocks Coverage

Tenneco Inc. has extended coverage of Monroe Quick-Strut premium strut assemblies to 53 additional late-model applications representing more than 3.6 million registered vehicles.

Be the First to Know

Get the latest news and most popular articles from MTD delivered straight to your inbox. Stay on top of the tire industry and don't miss a thing!