Michelin recorded first quarter sales up 2.3% to 5.45 billion euros, slowed by unfavorable currency effects and still below the level before the pandemic, according to published results Monday.
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Before the Covid crisis, in the first quarter of 2019, the group recorded a turnover of 5.81 billion euros.
At constant exchange rates, sales increased 8.3% from January to March compared to the same period last year, "
against a backdrop of a strong recovery in global economic activity
", particularly in China, Michelin said in a press release.
Sales were notably reduced by the depreciation of the US dollar against the euro and the decline of the Brazilian real, the Turkish lira and the ruble against the euro.
Michelin has confirmed its objective of annual operating income from sectors above 2.5 billion euros at constant parities, and a structural free cash flow of around one billion euros, excluding new systemic effect linked to Covid-19.
The global passenger car and light truck tire market rebounded by 9% in units in the first quarter of 2021. This increase in the tire market, compared to a first quarter of 2020 hit by the Covid, was however mitigated by the effects of the shortage of semiconductors affecting the global automotive industry, Michelin reports.
Overall, "
the market remains very complicated for the moment,
" said Michelin president Florent Ménégaux during a conference with analysts. "
We don't know when manufacturers will resume production at previous levels
." As for heavy goods vehicles, the number of new tires sold increased by 20% in the first quarter of 2021, "
driven by strong demand for freight in a context of global economic recovery
" and approaching levels at the start of 2019.
The rebound was also driven by activities in the agricultural, construction and two-wheeled sectors, particularly in motorcycles (initial equipment) and bicycles. Non-tire activities (-0.3%) were “
penalized by the drop in gastronomy and travel activities
”. The group announced at the beginning of April a target of 5% growth per year between 2023 and 2030, as well as new environmental commitments. Michelin also plans to achieve between 20% and 30% of its sales in 2030 in activities other than tires, such as connected objects, medical, or hydrogen.