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.
The tire manufacturer achieved sales of 6.481 billion euros (+19%) in the first three months of the year, the room for maneuver that its more premium price positioning still gives it and the positive exchange rate effects having eclipsed 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 forecast.”
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 profit from the sectors of more than 3.2 billion euros at constant parity and that of a structural free cash flow of more than 1.2 billion, “excluding intensification of systemic effects”.
During a conference call with analysts, Chief Financial Officer Yves Chapot said he remains confident for 2022 despite a negative impact from inflation that is a billion euros higher than expected before the start. of 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 the 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, edited by Jean-Michel Bélot and Bertrand Boucey)
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