Michelin posts a slight drop in sales on lower tyre volumes

By Reuters News

Oct 20 (Reuters) - French tyre maker Michelin MICP.PA 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.

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

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

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

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

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

  • It confirmed its full-year guidance

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($1 = 0.89 euros)

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