Michelin Q3 revenue up by 8.7%
Europe’s biggest tyre maker Michelin’s third-quarter revenue rose 8.7 per cent. According to the company, revenue reached 5.31 billion euros ($5.92 billion) from 4.89 billion euros in 2014. Bloomberg reported that Michelin sales overtook the 5.22 billion-euro average of four analyst estimates it compiled. Michelin reiterated full-year targets for revenue to rise, excluding currency effects, and for structural free cash flow to exceed 700 million euros, the report said.
Bigger OEM sales and in North America and Europe and weaker euro against the dollar drove the tyre maker’s performance.
Michelin has said that it has plans to boost combined annual production capacity of three new plants in China, Brazil and India to 400,000 tonnes in 2020 from 134,000 in 2015. It is part of a 2013 strategy to generate one billion euros in annual structural free cash flow by 2020 and at least a 15 percent return on capital employed. Expansion outside Europe is intended to ease foreign-exchange risks over time, as costs and revenues in various currencies are more balanced.
“Thanks to its evenly balanced geographic footprint, Michelin is maintaining its objective of outperforming its markets in full-year volume growth,” the company said.