Michelin Delivers 'Robust' First Quarter Results
The Michelin Group achieved 5.4 billion euros in sales during the first quarter of 2021, up 8.3% over the same period last year. The company also posted 7.5% year-over-year growth in tire volume.
Increases were partially driven by improvements in tire mix, including "market share gains in Michelin-branded, 18-inch and larger tires," according to company officials.
"Despite the disruptions from the COVID-19 pandemic and a certain amount of disorganization in the supply chain, Michelin delivered a robust performance in a first quarter shaped by an upturn in global demand," according to Michelin Managing Chairman Florent Menegaux.
"In addition to diligently managing its prices and strengthening its positions in the most promising growth segments, the group continued to improve its competitiveness in line with the Michelin In Motion strategy," which was unveiled in April.
In North America, consumer replacement tire demand "rose by 10% overall, with gains in all of the leading markets over the period (United States, up 11%; Canada and Mexico, up 9%)," according to Michelin officials.
However, OE demand in North and Central America dropped 8% during 1Q 2021, "as the chip shortage forced plants to suspend production." But March "saw an extremely robust recovery."
On the truck tire side, "a recovering economy and strong freight demand enabled markets to end (the) first quarter of 2021 up 11% versus flat growth in the prior-year period, despite the spread of the pandemic."
OE truck tire demand in North and Central America "rebounded robustly off of favorable, prior-year comparatives, particularly in March."
In addition, the surface mining tire market "began the year slowly, but showed signs of a pick-up in March" and the ag tire market "sustained the rebound observed since the summer of 2020, which has been very robust in the OE segment, thanks to the improvement in grain prices and farm incomes," say Michelin officials.