Exchange rates negate higher tire sales for Michelin

PARIS (April 25)—Groupe Michelin sold 5.1-percent more tires in the first quarter, but fluctuating currencies negated the improvement, leaving reported sales of $3.92 billion 4.9 percent behind the 2002 period. In North America, Michelin reported a 6-percent drop in replacement sales of passenger and light truck tires and a 10.9-percent jump in replacement truck tire sales. The drop in passenger/LT sales compares favorably with a 5.4-percent overall market drop, whereas the gain in truck tire sales contrasts sharply with a flat overall market, Michelin said. Original equipment sales were up in both categories, 9.2 percent in the passenger/LT segment and 5.7 percent in truck, Michelin said. Earnings were not disclosed at this time. Regarding net sales, Michelin said its sales gain in tons and an improved price/mix were offset by the swing in the value of the euro vs. the U.S. dollar, Canadian dollar, Mexican peso and Brazilian real.