Michelin Quarterly Revenue Rises on Higher Specialty-Tire Demand
Michelin & Cie (ML), the world’s second- largest tiremaker, said third-quarter revenue rose 5.7 percent on higher demand for specialty tires.
Sales gained to 5.44 billion euros ($7.11 billion) from 5.14 billion euros a year earlier, the Clermont-Ferrand, France- based company said today in a statement. The figure beat the 5.31 billion-euro average of seven analyst estimates compiled by Bloomberg.
The 123-year-old company, which makes more than half of its revenues selling passenger car and light truck tires, is seeking to expand in the more profitable segment of tires for planes and mining equipment.
Michelin also intends to increase sales outside Europe and North America. The company plans to invest 1.6 billion euros to 2.2 billion euros a year through 2015 to fuel the expansion. About 60 percent of the spending will target new markets.
Michelin stuck to its 2012 forecast for a “clear” increase in operating income before non-recurring items. The company said full-year sales volume will decrease 5 percent. The French manufacturer has said that it expects 2013 to be a “year of transition” for tire markets. For 2015, the company targets operating profit of about 2.9 billion euros.
To contact the reporter on this story: Mathieu Rosemain in Paris at firstname.lastname@example.org