PARIS (dpa-AFX) - French tire maker Michelin Cie Des Estb (MGDDY.PK, MGDDF.PK) reported that its sales for fiscal year 2018 rose 4.1% at constant exchange rates.
Volumes were up 0.9%: after declining in the first quarter, volumes rose by 2% over the following nine months, in markets disrupted by the contraction in Chinese and original equipment Passenger car tire segment demand.
The company reported 2.775 billion euros in segment operating income, up 304 million euros or 11% at constant exchange rates.
In 2019, the Passenger car and Light truck tire markets are expected to be mixed, with modest growth in the Replacement segment and a contraction in the Original Equipment segment. Truck tire markets are expected to remain stable overall, given the decline in demand in China, while the Mining, Aircraft and Two-wheel tires markets should remain dynamic. Based on January 2019 exchange rates, the currency effect is expected to have a slightly favorable impact on segment operating income. The impact of raw materials costs is currently estimated at around a negative €100 million.
In this environment, Michelin's objectives for 2019 are: volume growth in line with global market trends; segment operating income exceeding the 2018 figure at constant exchange rates and before the estimated 150 million euros contribution from Fenner and Camso; and structural free cash flow of more than 1.45 billion euros.
Copyright RTT News/dpa-AFX