CLERMONT-FERRAND, France — Group Michelin reported increased sales revenues and volumes for the first quarter.
In its financial statement posted April 20, the company said sales increased by 10 percent to $5.99 billion thanks to replacement tire demand growth. Sales volumes also increased 7.3 percent with a rebound in mining tire demand the primary cause of the increase.
Michelin did not disclose earnings data.
Sales of specialty tires, including earthmover, agricultural, two-wheel and aircraft, saw the biggest increase for the quarter, by 15 percent to $907.7 million.
Passenger and light vehicle tire sales also increased by 10 percent to $3.43 billion while truck and bus tires rose 6 percent to $1.61 billion.
Michelin said it expected tire markets to track the trends observed in late 2016, in particular with the upturn in mining tire sales. It projects most of the growth in 2017 to be concentrated in the first six months, because of the early buying already occurring ahead of the price increases.
In February, Michelin announced price increases of up to 8 percent for the passenger car and light truck, truck, earthmover, agricultural, and two-wheel vehicle tires. The price rises will be effective by the end of April.
The French tire maker said it would continue to manage prices in the face of higher raw materials costs. It estimates that the costs will have an impact of about $963.3 million for the full year.