Michelin’s Sales Jump 28% on Higher Truck Demand
Tire maker Michelin & Cie. said its first-quarter revenue rose 28%, led by surging demand in truck tires and a general economic rebound, Bloomberg reported.
Sales rose to 5.05 billion euros ($7.36 billion) from 3.94 billion euros a year earlier, France-based Michelin said in a statement.
It forecast a full-year volume gain of at least 6.5% as the economic recovery boosts sales to European trucking operators.
“The strong rebound of the European truck-tire market reflects increasing orders for new vehicles,” the company said.
Michelin, which ranks behind Bridgestone Corp. in global production, reiterated its full-year goal for an increase in operating profit even with rising costs of rubber, steel and oil, Bloomberg reported.
The company said tire price increases, announced or already implemented, will offset about 80 percent of the estimated full- year costs through higher raw material costs, Bloomberg said.
