Michelin Tire Volumes Down 2.4% So Far in 2022
Despite a 2.6% decrease in tire volumes in the third quarter, Michelin Group recorded total sales that were nearly 24% higher than the same period one year ago.
The volume drop in the quarter was slightly worse than the 2.4% decrease recorded thus far this year.
The company benefitted from price-mix (896 million euros), as well as gains from currency exchange rates of 536 million euros. Total sales for the third quarter were 7.4 billion euros, up from 6 billion euros in the same period a year ago.
The quarter added to gains achieved so far through the first nine months of 2022. Michelin’s sales through the end of September totaled 20.7 billion euros, up 20.5% from 17.2 billion euros in the first nine months of 2021.
Tire volumes for the first nine months are down 2.4%, Michelin reported. The tiremaker attributed the decrease in volumes mostly to the exit from Russia, as well as lockdowns in Chinese cities and persistent operational disruptions.
In North and Central America, original equipment PLT units grew by 11% through September, while replacement PLT tire units fell by 2%. The truck tire market is in positive territory in both OE and replacement in the region, with OE units up 10% and replacement truck tire units up 12%.
Michelin did not report profit figures, but did confirm guidance for year-end segment operating income to be above 3.2 billion euros.
Globally, Michelin maintained its projections for the passenger, light truck and truck and bus tire markets for 2022, and slightly decreased its projection for the tires that contribute to the company’s specialty tire categories.
Michelin forecasts a global passenger and light truck tire market between -2% and +2% for the year, with replacement global sell-out demand expected to be “slightly down” compared to 2021.
In the truck tire category, excluding China, growth is expected to be in the range of +2% and +6%, with strength in both original equipment and replacement tire orders.
The specialty tire market outlook includes robust demand for mining tires, and overall growth in off-the-road tires, except for flat markets for replacement farm tires. (Motorcycle and aircraft tires also are part of Michelin’s specialty category, which overall is predicted to record growth of 3-7%.)