Michelin Q1 Sales Better Than Expected

Michelin announced an increase in first quarter sales of just over 10 per cent; easily surpassing the estimates of industry analysts, who had predicted a 6.7 per cent rise. The outlook, however, remains cautious and Michelin has increased its allowance for raw material costs by 170 million euros, from 360 million euros to 540 million).

This mood of caution is reflected in analysts’ reactions, who believe that future performance will depend on matters largely outside Michelin’s control. The first of these is a hoped-for revival in the European replacement truck tyre market, which has yet to happen, and the second is that the price increases deemed necessary to cover the additional 170 million euros, will stick.