Financial information at march 31, 2012

• Tire markets down overall, with a contrast between:

  • Passenger Car, Light Truck and Truck tires, where demand weakened as expected.

  • Specialty businesses, which remain buoyant.

• Sales volumes down 9.6%, as expected, due to:

  • A high basis of comparison with first-quarter 2011, when volumes were boosted by sales ahead of price increases, for which Michelin was the forerunner.

  • Ongoing dealer destocking over the quarter.

• A sharp 13.8% improvement in the price mix, primarily reflecting the impact of the 2011 price increases and contractual price adjustments, as well as the favorable shift in the sales mix

Michelin confirms its objective of stable sales volumes over the full year, in a market environment that is more uncertain in Europe, resilient in North America and more vigorous in the growth regions.

Capital expenditure, in a projected amount of €1.9 billion, is focusing on the MICHELIN brand premium segments (mining tires, 17-inch and over tires, etc.), as well as on production capacity in the new markets.

Sustained price management in response to rising raw materials should amply offset their additional cost impact, which is still estimated at €300-350 million for the year.

Lastly, Michelin reaffirms its 2012 objective of reporting a clear increase in operating income and positive free cash flow, before the impact of the sale of the Paris building.