The Michelin Group reported first-half results on Monday and raised its full-year guidance.
Demand will continue to be impacted by global supply-chain disruptions:
After recovering sharply in the first half, global tire demand won’t benefit from as favorable a base in the second half of the year, “when it will likely continue to be impacted by global supply chain disruptions,” The Group said.
Car and light truck tire markets expected to expand:
Passenger car and light truck tire markets are expected to expand by between 8% and 10% over the year and truck tire markets by between 6% and 8%, The Group said. The specialty markets should deliver 10% to 12% growth over the year.
The Group plans to strengthen its positions:
Barring any new systemic effect from Covid-19, Michelin said it “plans to strengthen its positions” in the prevailing market environment.
The Group said it is raising its objectives for the full year, targeting segment operating income in excess of EUR2.8 billion at constant exchange rates, versus EUR2.5 billion as previously announced, and structural free cash flow of more than EUR1 billion versus around EUR1 billion previously.
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