First Quarter Results Of Michelin Better Than Expected

Michelin’s first quarter sales were up 14.8% in value, as against a predicted 12%. Among the reasons for this was a strong performance in the USA from MAST (Michelin Americas Small Tires) and a strong Dollar versus a weak Euro.

Volume also increased, but it is not clear whether this was due to dealers stocking up in order to beat well-publicised price increases. In Europe, and definitely in Germany, Michelin has become more aggressive; a more realistic explanation might be that it has reduced its price differentials vis-a-vis its competitors. This kind of ‘realism’ might be interpreted by competitors as Michelin buying back market share.