Michelin posts a slight drop in sales on lower tyre volumes

Michelin Reports Slight Decline in Sales as Tyre Volumes Drop Despite Q3 Gains

Michelin’s Nine-Month Financial Performance Overview

Oct 20 (Reuters) - French tyre maker Michelin on Tuesday reported a drop in nine-month sales, as tyre volumes declined, despite an improved currency effect in the third quarter.

The company has been hurt by a negative currency effect since the beginning of the year, linked to the depreciation of the US dollar during the first half.

Key Financial Highlights

Sales and Currency Impact

• Sales shrank 0.5% to €19.18 billion ($21.54 billion), but rose 1% at constant exchange rates

• Currency effect was negative by 1.6% over the period, but turned favourable in the third quarter

Tyre Volumes and Market Dynamics

• Tyre volumes declined by 0.8%, mainly linked to lower original equipment sales

Segment Performance

Polymer Composite Solutions Growth

• Polymer Composite Solutions segment continued to grow, rising 21.9% to €1.15 billion, supported by the acquisitions of Cooley Group, Flexitallic and TexTech

Price-Mix and Raw Material Costs

• It reported a 1.1% price-mix effect, reflecting price hikes in reaction to increasing raw material costs

Outlook and Additional Information

• It confirmed its full-year guidance

($1 = 0.89 euros)

(Reporting by Mathias de Rozario and Rihab Latrache in Gdansk; Editing by Shilpi Majumdar and Joyjeet Das)