Cost Reductions Planned By Michelin

Michelin achieved a 2.8 per cent growth in sales for the first quarter of 2001, compared to the same period last year. The passenger car divisions in Europe and the USA were successful, selling more UHP tyres than ever before and improving the mix.

Obviously, price increases are sticking, with the exception of truck tyres in the USA. Michelin has announced a cost reduction plan for the US, designed to save around 125 million Euro. Despite a sharp fall in EBIT, Deutsche Bank analysts confirmed Michelin shares as a “buy”.