Michelin to Feel the Effect of Rising Material Costs Next Year

Thomson Financial has reported comments made by Michelin CFO Jean-Dominique Senard to the effect that the increased prices now being paid for the raw materials used in tyre production will “have an impact” on the group’s 2008 results, although he added that it is too early to indicate the extent of this impact.

“The recent movements that we have experienced are going to have an impact and the question is how much,” said Senard. A clearer picture of the effect raw material prices have had will most likely be provided early next year when Michelin’s 2007 full year results are made public, he added. For 2007 the impact of rising raw materials upon annual results should be, Senard reports, around 60 million euros, give or take a few million.