Suppliers

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 20171Q 2016% Change
Passenger and light truck tires and related distribution3.2 billion2.9 billion10.5%
Truck tires and related distribution1.5 billion1.4 billion6.1%
Specialty (includes earthmover and ag tires).8 billion.7 billion14.9%
Total5.6 billion5.1 billion9.9%

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 marketOEReplacement
North America2%3%
Europe excluding Russia & CIS5%5%
Europe including Russia & CIS5%6%
China6%12%
Asia (including China, excluding India)5%7%
South America10%3%
Africa, India & Middle East1%2%

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

Truck tire marketOEReplacement
North America-8%14%
Europe excluding Russia & CIS9%13%
Europe including Russia & CIS9%13%
China22%12%
Asia (including China, excluding India)16%9%
South America-4%7%
Africa, India & Middle East2%-3%

Related Topics: Michelin, Michelin financials

Comments ( 0 )
More Stories
Ateq says it is the first to market coverage for Alligator Sens.it dual-band TPMS sensors.
Product Ateq Adds Alligator Dual-Band Sensor Coverage to Its TPMS Scan Tool

Ateq TPMS Tools LC has added coverage for new Alligator dual-band sensors, which program sensors of both 315 and 433 frequencies, to its TPMS scan tool

The new Proxes Sport has a 25,000-mile tread wear warranty and is backed by the Toyo Tires 500 Mile Trial Offer.
News Toyo Brings New Proxes Sport to the U.S. Market

The new Proxes Sport max performance summer tire from Toyo Tire U.S.A. Corp. is now available in the United States. 

The Giti GDL633 FS features seven circumferential grooves to move water.
News Giti Expands Ultra-Wide-Base Tire Lineup

Giti Tire (USA) Ltd. is amping up its lineup of ultra-wide-base tires with two new offerings, the GDL633 FS for the drive axle position and the GTL933 FS for trailers in long haul applications.

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!