Price Hike Boosts Michelin's 1Q Sales

Posted on April 24, 2017

Net sales for Michelin Groupe were up 9.9% in the first quarter of 2017, led by early buying of tires ahead of the company’s price increase which went into effect April 1.

Michelin announced a price hike of up to 8% in North America on Jan. 31, and days later announced a similar increase in Europe.

In the first quarter, ended March 31, Michelin said volumes were up 7.3% compared to the same period a year ago. Another factor that attributed to the increase:“the sustained rebound in mining tire sales.”

Net sales totaled 5.6 billion euros, compared to 5.1 billion euros in the first quarter of 2016. The company didn’t release earnings.

Sales were up in all three of Michelin’s divisions. Sales figures are reported in euros.

  1Q 2017 1Q 2016 % Change
Passenger and light truck tires and related distribution 3.2 billion 2.9 billion 10.5%
Truck tires and related distribution 1.5 billion 1.4 billion 6.1%
Specialty (includes earthmover and ag tires) .8 billion .7 billion 14.9%
Total 5.6 billion 5.1 billion 9.9%

The company reported a favorable currency effect of 2.5% for the first three months of 2017.

Passenger and light truck tires:

“Passenger car and light truck tire volumes increased by 8%, in global markets up 5% for the period. The mix effect remained favorable, thanks to the 31% surge in Michelin brand sales in the 18-inch and larger segment, and the success of the Michelin CrossClimate and Pilot Sport 4S lines.”

Truck tires:

“Truck tire volumes rose by 3% over the quarter, in a global market up 8%, with a substantial contribution from demand in China, a country to which the Group’s market share is still limited.”

Specialty business:

Earthmover tire net sales increased on the back of higher sales volumes. Net sales of farm tires “declined somewhat” in original equipment and “climbed steeply” in the replacement segment due to early buying ahead of price increases. Total volumes rose slightly over the period. Additional price increases of up to 12% were announced for the month of July in Europe.

Tire demand by region

Michelin says the passenger and light truck markets, in both original equipment and replacement, grew in every region. Figures are year-over-year percentages in number of new tires, as of March 31, 2017.

Passenger and light truck market OE Replacement
North America 2% 3%
Europe excluding Russia & CIS 5% 5%
Europe including Russia & CIS 5% 6%
China 6% 12%
Asia (including China, excluding India) 5% 7%
South America 10% 3%
Africa, India & Middle East 1% 2%

Truck tires: Figures are year-over-year percentages in number of new tires, as of March 31, 2017.

Truck tire market OE Replacement
North America -8% 14%
Europe excluding Russia & CIS 9% 13%
Europe including Russia & CIS 9% 13%
China 22% 12%
Asia (including China, excluding India) 16% 9%
South America -4% 7%
Africa, India & Middle East 2% -3%

Related Topics: Michelin, Michelin financials

Comments ( 0 )
More Stories
Video Cemb Brings Fast, Touchless Wheel Alignment to North America

Cemb-USA/BL Systems Inc. is highlighting the 5-second, touchless wheel alignment system. Installation of the first system in North America is underway.

News Bridgestone Creates Partnership to Focus on Natural Rubber Source

Bridgestone Americas Inc. is partnering with a chemical company to develop a path toward the commercialization of guayle in the agricultural, sustainable rubber and renewable chemical sectors.  

The new G-Max RS is the General brand's first UHP summer tire. The company says its Smart Technologies offer impressive performance in dry and wet conditions while visual alerts provide driving confidence.
Product New G-Max RS UHP Summer Tire Rounds Out General Line

The new G-Max RS is the first General brand tire designed for the ultra-high performance summer tire segment.

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!