Slow Growth At Michelin in Q1

Michelin Group income increased by 4.1 per cent to 3.8 billion Euro, ahead of analysts’ estimates.

This was assisted by volume, pricing and currency in Michelin’s favour. Sales for 2002 have started on a positive note with volumes up on the same quarter in 2001. However, the key brands have fallen and the truck tyre market is dropping faster than expected.

Price increases have so far held and Michelin believe they are on target for a 6.7-7.4 per cent margin in 2002, but this is dependent upon the price increases holding.