Michelin's sales in three quarters were 15 billion euros

Michelin reported sales for the first nine months of the year were €15 billion, down 15% from the same period last year at constant exchange rates. In the third quarter, the decline was only 5%, which the company believes reflects the recovery in business.

Following a sharp drop in performance in the second quarter of 2020 due to the global coronavirus crisis, global tire demand rose more-than-expected in the third quarter. In the passenger car and light truck segment, demand fell 17% in the first nine months, with a 6% decline in the third quarter showing a steady increase over the previous quarter. The truck tire segment was down 14% in the first three quarters, but in the third quarter the decline was only 6% year-on-year, thanks in part to strong demand for OE tires in China. In the segment of the specialized tire market, the tendencies of the first half of the year were preserved. The rebound in agricultural and two-wheeler tire sales was able to offset the slowdown in the mining tire segment, which felt the impact of the crisis, several months behind.

For the full nine months of 2020, Michelin's sales were down 16.8% year-on-year (of which 1.7% was attributable to currency effects). This reflects a 17% decline in sales volumes, somewhat mitigated by improved third quarter numbers (-6.7%).

At the same time, as noted, Michelin managed to increase its market share in 18-inch and larger tires.

With regard to the outlook for 2020 as a whole, the French tire manufacturer expects its financial results to continue to be affected by the continuing economic uncertainty. For the year as a whole, according to Michelin's forecast, the market for passenger car and light truck tires will shrink by 13-15%, the market for truck tires - by 12-14%, and the markets for specialized tires - by 15-19%. Michelin is revising its full-year outlook based on the new data. The company's operating income is expected to be in the order of EUR 1.6 billion and its free cash flow is expected to be €1.2 billion.