25-10-2021
Financial information at September 30, 2021
Despite an increasingly turbulent environment, Michelin reported €17.2 billion in sales for the nine months ended September 30, 2021, an increase of 15.6%.
The Group maintains its guidance for 2021.
The environment in which the Group is currently operating is characterised by:
The persistent health crisis.
Extensive disruption across every supply chain.
Rising raw materials, logistics and, now, energy costs.
Worsening labor shortages in North America and, to a lesser extent, in Europe.
In this environment, and with less favorable comparatives than in the first half, tire demand saw the following movements in the third quarter:
In Passenger Car and Light truck tire markets, a steep 21% decline in the Original Equipment segment, due primarily to the continued shortage of auto semi-conductors, and stable volumes in the Replacement segment.
In Truck tire markets, a robust 7% gain outside China and a sharp 30% contraction in China.
Sustained demand in the Specialty businesses, with a particularly strong rebound in the Original Equipment Construction and Agricultural tire segments.
With sales of €6 billion in the third quarter, consolidated sales ended the first nine months at €17.2 billion, up 15.6% year on year:
8% growth in tire volumes, of which 1.3% in the third quarter.
A 4.1% increase from the tire price-mix effect, reflecting:
price increases implemented to offset rising costs,
continued enhancement of the product mix, with market share gains in MICHELIN-brand 18-inch and larger tires,
a favorable OE/Replacement mix in the Passenger car and Light truck tire business.
A 5.8% increase in non-tire sales.
A 3.5% decrease from the still unfavorable currency effect.
In 2021, in a still highly disrupted environment, Passenger car and Light truck tire markets are expected to expand by 6% to 8% over the year, impacted by semiconductor shortages, while Truck tire markets should rebound by 6% to 8% and the Specialty markets should see a gain of 9% to 11%. Barring any new systemic effect from Covid-19[1] and assuming slightly over-market growth in its sales, Michelin maintains its full-year targets of segment operating income in excess of €2.8 billion at constant exchange rates and structural free cash flow[2] of more than €1 billion.
THE GROUP GOVERNANCE
Don't miss anything!
Spokespersons
Discover the Group's spokespersons