PARIS (Reuters) – Michelin on Tuesday reported better-than-expected first-quarter sales and confirmed its full-year guidance as price increases helped it offset inflationary pressures exacerbated by the conflict in Ukraine and the resurgence of COVID-19 in Ukraine. China.
Over the first three months of the year, the tire manufacturer achieved sales of 6.481 billion euros (+19%), the room for maneuver that its more premium pricing position still gives it and the positive exchange rate effects having clipped the impact of almost sluggish volumes over the period.
The consensus of analysts provided by the company gave a turnover of 6.34 billion euros.
“In 2022, in a very uncertain context, the markets should show slight growth,” added Michelin in a press release, while specifying that this growth would be “in the lower part of the ranges initially planned.”
In March alone, demand for original equipment tires – which are fitted to new vehicles when they leave the factory – fell by 14%, in a context already affected by the shortage of electronic components which is hampering vehicle production.
Despite the uncertainties, the Clermont-based group has maintained its annual objective of an operating result of the sectors above 3.2 billion euros at constant parity and that of a structural free cash flow above 1.2 billion, “excluding intensification of the systemic effects “.
During a teleconference with analysts, the financial director, Yves Chapot, specified that he remained confident for 2022 despite a negative impact of inflation greater than one billion euros than expected before the start of the year. the war in Ukraine at the end of February.
The conflict has caused major disruptions in supplies from Russia, a major supplier of petroleum-derived products, such as carbon black. Yves Chapot added that alternative sources of supply should allow Michelin to no longer be at all dependent on Russian deliveries from the beginning or mid-June.
(Gilles Guillaume report, told by Jean-Michel Blot and Bertrand Boucey)