CLERMONT-FERRAND, France — Group Michelin's revenue for the first three months of 2020 fell 8.3% to $5.8 million, as unit sales dropped 11.7% amid the COVID-19 pandemic-induced economic downturn.
Michelin did not, at this time, disclose earnings for the period, but stressed in its first-quarter results that it has taken a number of measures to "mitigate the financial impact of the impending deep recession."
While volumes were off by nearly 12% for the quarter, Michelin said the decline reflected an even steeper drop in March, especially in the last two weeks of the month.
By business unit, Michelin reported:
• Automotive & related distribution — Sales revenue fell 6.9% to $2.87 billion, based on a 10.5% drop in unit volumes offset to an extent by a "favorable" price-mix effect — which reflected in part the "continued enrichement" of the mix — and the consolidation of Indonesian tire maker P.T. Multistrada.
• Road transportation & related distribution – Sales declined 12.3% to $1.5 billion, based on a 14.9% drop in unit volumes "cushioned" by a favorable geographic mix and the resilience of its services and solutions offering and a "robust" price-mix effect.
• Specialty businesses & related distribution — Revenue down 6.9% to $1.51 billion, based on a 9.9% drop in volume due to the collapse of certain markets impacted by the health crisis, offset by the robust price-mix effect. Within this segment: sales of surface mining tires remained "resilient"; sales of other OTR tires declined steeply as markets collapsed; and sales of two-wheeler tires fell slightly, reflecting market share gains in a "sharply contracting" market; and sales of aircraft tires remained "somewhat firm," supported by the strong demand in the commercial aircraft tire segment early in the year and the resilience of the military segment.