Increase in Michelin Revenue for 2010 Unlikely – Rollier

Revenue at Michelin & Cie. is not expected to increase next year. Managing partner Michel Rollier has expressed his caution on growth prospects due to uncertainty about the automotive industry’s recovery and rising raw material costs.

“We do not have much visibility,” Rollier said in an interview reported by Bloomberg. “Just look at all the indicators. We have some signs that show that road transportation is doing slightly better, but we’re still very hesitant and cautious.” A prior Bloomberg survey of a number of analysts had predicted a 4.3 per cent increase in global revenue in 2010, a revenue of 15.4 billion euros next year, up from an anticipated 14.7 billion euros in 2009.

While wholesale de-stocking by truck tyre sector customers may have come to an end, OEM sales are still “very depressed,” said Rollier, with the market tipped to expand only marginally in the fourth quarter compared with “just horrible” quarter a year earlier. “So far we’ve not seen very visible signs of a clear recovery for truck tyres,” he continued. “Profitability is improving as the price of some raw materials eases and the division may break even this quarter.”