The first half of the current fiscal year has been very favourable for the Michelin Group, as they posted gains in both net sales and unit volume.
For the period ending June 30th, Michelin registered net income of 863 million euros, a 12% increase in comparison to the results posted for the same period in 2016. Net sales for the period totalled 11 billion euros, compared to 10.3 billion last year.
“Michelin’s good performance, compared with strong first-half 2016 results, is in line with our 2020 plan objectives,” explained CEO Jean-Dominique Senard in a press release. “The main drivers of these results include an increase in sales volumes, disciplined pricing policy management, as well as further improvements in competitiveness and the commitment of our employees in serving customers.”
“Today, we are confirming our guidance for 2017, with a second half that will benefit from improved margins resulting from price increases,” he also added.
“Over the second half of the year, no matter the prevailing winter weather conditions, replacement tire markets should recover from their decline after the unexpected increase in anticipated buying,” explained the company.
“Demand for original equipment tires is expected to continue its upward trend in the truck, earth-moving machinery and agricultural segments, with growth slowing in the passenger car and light truck segments. Sales of mining tires are expected to remain strong,” they added.