Net sales for the Michelin Group increased 3% in the third quarter, but the company says the North American passenger and light truck tire market has shrunk during the first nine months of 2017 — and the decline is evident in both original equipment and replacement tires.
Both net sales and tire volume were up for the first half of Groupe Michelin's 2017 fiscal year ended June 30. However, consumer and truck tire margins were down.
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.
Margins on consumer tires helped boost Groupe Michelin’s net income 43% in 2016. Michelin posted net income of 1.7 billion euros on net sales of 20.9 billion euros for its fiscal year ended Dec. 31, 2016. That compares to income of 1.2 billion euros on sales of nearly 21.2 billion euros for fiscal 2015.
Groupe Michelin posted net sales of nearly 5.2 billion euros for the third quarter ended Sept. 30. That compares to sales of 5.3 billion euros for the same period last year.
Despite a drop in net sales of about 2%, Groupe Michelin says its tire volumes in the first half of 2016 beat the market in every segment. Passenger and light truck tires were the leaders, with a 4% increase over the same period a year ago.
Despite a 4% increase in net sales of passenger car and light truck tires, Michelin Group’s net sales were up less than 1% in the first quarter of 2016 versus the year-ago period.
Groupe Michelin’s sales of passenger and light truck tires “clearly outpaced the market” during the first half of 2015, the company said, with net sales of consumer tires rising 13.4% compared to the same period a year ago.
Groupe Michelin will release its financial results for the first half of 2015 on Tuesday, July 28.
Group Michelin recorded net income of 1.0 billion euros on net sales of 19.5 billion euros for its fiscal year ended Dec. 31, 2014. That compares to income of 1.1 billion euros on net sales of 20.2 billion euros for its fiscal 2013.
Groupe Michelin posted net sales of 14.5 billion euros for the first nine months ended Sept. 30, 2014. That was a 4.7% decrease compared to the first nine months of 2013.
Groupe Michelin posted net income of 624 million euros on net sales of more than 9.6 billion euros for the first half ending June 30, 2014. That compares to income of 507 million euros on sales of more than 10.1 billion euros for the first half of 2013.
Would you believe a 60% tariff? That is a possibility, according to a report by Exane BNP Paribas.
Groupe Michelin has begun steps to close its truck tire plant in Budapest, Hungary. According to Michelin, the closing is necessary "in response to the adverse trends and aggressive competition in the European truck tire market, which remains volatile and 23% down on its historic peak in 2007."