Demand has suffered in PC/LT from the slowdown in OE markets, but | ... in an environment that is likely to remain disrupted for a |
remains robust in the RT segment and in Truck tires excluding China... | long time across every supply chain |
Global Passenger car/Light truck tire market
(units)
FY Market scenario*+6% / +8% vs 2020
Market scenario presented with Q3 sales
Jan Fev Mar Avr Mai Jui | Jul Aou Sep Oct Nov Dec |
Truck tire market (excluding China)
(units)
FY Market scenario*+11% / +13% vs 2020
Market scenario presented with Q3 sales
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Unstable health situation
Maritime shipping crisis
Shortage of truck drivers
Sharp increase in raw materials and logistics costs
Sharp run-up in energy costs
Labor shortages
Specialties FY market scenario*: +9% / +11% vs 2020
Premium Review - December 2, 2021 | * Slide 10 |
Source: Michelin Market data are regularly adjusted and may be updated following their initial publication. |
Etc
- The environment in which the Group is currently operating is characterised by:
- the persistent health crisis
- extensive disruption across every supply chain
- rising raw materials, logistics and now, energy costs
- worsening labor shortages in North America and, to a lesser extent, in Europe
- As comparatives turned less favorable than in H1, demand varied widely in the third quarter:
- the OE PC/LT tire market fell 21% over the quarter, dragged down by the ongoing chip shortage, while the RT segment was stable
- the Truck tire market continued to expand outside China, gaining 7% over the quarter, but plunged by a steep 30% in China
- demand in the Specialty markets remained robust, with a particularly strong rebound in the OE Construction and Agricultural tire segments
- With sales of €6 billion in the third quarter, consolidated sales ended the first nine months at €17.2 billion, up 15.6% year on year:
- 14.8% growth in tire volumes, of which 1.3% in the third quarter
- a 2.8% gain from price increases designed to offset sharply rising costs
- a 1.3% increase from the mix effect, reflecting market share gains in the 18"+ segment and a favorable OE/RT mix in the Automotive division
- a 5.8% increase in non-tire sales
- a 3.5% decrease from the unfavorable currency effect
- The Group maintains its guidance for 2021(1)
- Barring any new systemic impact from Covid-19, such as deeper supply chain disruptions or tighter restrictions on freedom of movement that could result in a significant drop in the tire markets.
Premium Review - December 2, 2021
Analysis of Nine-month sales
(in € millions and %)
+19.1% | |||||||
+2,204 | +618 | +47 | 17 737 | -533 | 17 204 | ||
14 888 | |||||||
-20 | Price-mix | Non-tire activities | Currency | ||||
Scope* | (-3.5%) | ||||||
Volumes | (+4.1% | (+0.3%) | |||||
(-0.1%) | (+14.8%) | o/w mix | |||||
+1.3%) | |||||||
9M 2020 | 9M 2021 sales | 9M 2021 | |||||
sales | at constant exchange | sales | |||||
rates |
- Deconsolidation of the printing, publishing and marketing businesses associated with Maps & Guides for France (Michelin Editions) on February 1, 2021, and of Solesis on May 28, 2021; consolidation of TechnoBalt on May 1, 2021, ConVeyBelt on May 1, 2020 and MAV S.p.A. on December 1, 2020.
Premium Review - December 2, 2021
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Compagnie Générale des établissements Michelin SA published this content on 02 December 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 December 2021 08:20:06 UTC.