- Sales volumes up 2% in the third quarter after declining by 1.5% in the first half
Markets on a good trend in the third quarter, as expected:
- Passenger Car and Light Truck Tires: Markets up, except in Eastern Europe.
- Truck Tires: Technical rebound in Europe, but market still uncertain in North America.
- Mining market still growing in the third quarter, but other Earthmover markets hurt by the business environment.
Sales volumes up 2% in the third quarter, in line with full-year forecasts.
- Price effect stable in relation to the first half:
Price increases in countries experiencing currency depreciation. - Significantly unfavorable currency environment combining the impact of the lower US dollar and Japanese yen, anticipated at the beginning of the year, with the depreciation of other currencies against the euro in the third quarter.
Outlook for 2013
In light of the outlook for volume growth in the fourth quarter, Michelin confidently maintains its full-year objective of stable volumes in an environment shaped by recovering, yet still weak demand in mature markets and expanding demand in new markets.
Faced with a currency environment that has deteriorated since the summer, Michelin should experience a more deeply negative currency effect than was expected at the beginning of the year.
As a result, the Group is aiming for a year-on-year increase of around €150 million in operating income before non-recurring items, excluding the currency effect.
To offset the impact of unfavorable exchange rates, Michelin is further tightening its management of key levers, notably through even more careful control of gross margin and costs.
In this environment, the Group confirms its objective of positive free cash flow in line with the structural objective of €500 million and a 10% return on capital employed.
