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Michelin reports 2% rise in sales despite challenges in tire market

EditorRachael Rajan
Published 24/10/2023, 20:12
Updated 24/10/2023, 20:12
© Reuters.

Despite a challenging business environment marked by dealer destocking, rising interest rates, and a 3.6% reduction in tire sales volumes, Michelin (EPA:MICP) managed to report a 2% rise in overall group sales for the first nine months of 2023. The company's revenues reached EUR21.15 billion ($22.57 billion), even after the termination of its Russian operations and adverse macroeconomic conditions.

Currency effects negatively impacted the company's revenues by EUR545 million. However, this was offset by significant gains in other areas of the business. A surge in the tire price-mix contributed to a gain of EUR1.50 billion, marking a 7.2% increase. Additionally, there was a 5.4% increase in the specialty business segment.

In light of these results, Michelin reaffirmed its guidance for 2023, attributing the positive performance to its mining, agricultural, and aircraft markets. Despite the challenges faced in the tire market, these sectors have proven resilient and continue to drive growth for the group.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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