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Specialty tyres gas Michelin’s third-quarter gross sales beat

PARIS, Oct 25 (Reuters) – Michelin (MICP.PA) reported better-than anticipated third quarter gross sales on Monday, due partially to a robust rebound in demand for tyres for agricultural equipment.

The group, which makes tyres utilized in vehicles, plane, bicycles and industrial tools, stated gross sales totalled 6 billion euros ($6.98 billion) for July to September, up from 5.78 billion in the identical interval final 12 months.

Analysts polled by the corporate had predicted quarterly gross sales of 5.80 billion euros.

The rise in gross sales got here regardless of a world scarcity in semiconductor chips, which has compelled carmakers nonetheless recovering from coronavirus disruptions to chop manufacturing as they compete for provides with the patron electronics trade.

Michelin’s gross sales had been nonetheless down from 6.12 billion euros within the third quarter of 2019, earlier than the pandemic, and the group maintained its monetary forecasts for 2021.

Chief Executive Florent Menegaux stated the group posted “a very solid performance,” regardless of “major disruptions in our supply chains and sharp spikes in energy and other costs.”

The group cited rising uncooked materials prices and worsening labour shortages in North America and to a lesser extent in Europe.

However, rising grain and metals costs helped Michelin promote extra tires for mining and farm equipment.

Though demand for truck tyres grew in many of the world throughout the three months, it fell sharply in China following exceptionally excessive ranges in 2020, when fleets upgraded forward of latest emission rules, Michelin stated.

($1 = 0.8593 euros)

Reporting by Sarah Morland; Editing by Susan Fenton

The logo of French tyre maker Michelin is seen on a Formula E racing car's tyre during a news conference to present the partnership between Enel Group and FIA Formula E Championship at the MAXXI National Museum  in Rome, Italy May 17, 2016   REUTERS/Alessandro Bianchi