In weaker than expected markets, Michelin’s volumes declined by 0.8% in the first nine months of 2019, with in particular:
- A contraction in Automotive tire volumes, in line with the markets. Sustained growth in the 18-inch and larger segment
- A decline in Truck tire volumes in increasingly difficult markets
- Growth in the mining tire business, in line with expectations
- A steeper than expected drop in the Agricultural and Construction tire markets
A 2.1% improvement in the price-mix effect, attributable to:
- Disciplined price management in every business and region, in particular with price increases in the third quarter
- A strong mix effect, shaped by a favorable business-mix and a firm product-mix in the Automotive segment
Contribution from acquisitions in line with expectations (+7.1%)
Sustained deployment of the competitiveness plan
“In response to a market downturn that was sharper than expected, particularly in the Truck segment, the Group is continuing to improve the competitiveness of its operations, carefully manage its prices and strengthen its positions in the fastest growing segments and businesses. In these challenging times, I would above all like to commend all our teams for their engagement and hard work in limiting the impact of this unfavorable environment.” Florent Menegaux, Chief Executive Officer
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SOURCE: Michelin
