By Mathias de Rozario
(Reuters) -French tyre maker Michelin reported a 3.4% decline in sales in the first half of the year, in line with market expectations, as a fall in sales volumes was partly offset by higher selling prices.
The group confirmed its previous guidance for the full year, in the absence of any further deterioration in the economic environment in the second half of the year.
WHY IT’S IMPORTANT
Michelin’s business continues to be impacted by a slowdown in the automotive market, especially in Europe.
The group, which, at the end of last year, employed more than 23,500 people at its production sites across the U.S. and Canada has, since March, been facing tariffs imposed by U.S. President Donald Trump.
It is looking at accelerating investments in the United States to counter the impact of tariffs.
BY THE NUMBERS
Sales fell to 13.03 billion euros ($15.33 billion) in the first half from 13.48 billion euros a year ago. That compared with the forecast 13.08 billion euros in a company-provided consensus.
The company recorded a 6.1% drop in volumes, mainly in its original equipment sales.
The impact from the U.S. tariffs were around 65 million euros in the first half of the year. They are expected to have an impact of around 200 million euros over the full year.
KEY QUOTES
“Our results have been severely penalised by the fall in volumes linked to our original equipment activities, whether in the automotive or truck sectors, or in a number of specialities, including heavy goods vehicles, agriculture and infrastructure,” , Chief Financial Officer Yves Chapot said on call with journalists.
“We have chosen to be as localised as possible, so 70% of what we sell in the United States is made in the United States” he added on the impact of tarrifs.
($1 = 0.8499 euros)
(Reporting by Mathias de Rozario in Gdansk; Editing by Matt Scuffham)
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