Michelin declared first-quarter revenue up 5.1% due to price increases and a jump in sales of specialty tires.
The company declared it plans to invest 1.9 billion euro this year, mainly on premium segments such as mining tires and tires 17 inches or over, as well as on production capacity in new markets. In the first three months of 2012 sales were down 0.1% to 1.6 billion euro, while the car and light truck tire business posted a 2.9% revenue gain to 2.76 billion euro. Sales of specialty tires for planes, earthmovers used in mining and agricultural equipment were up 24% to 940 million euro.
Michelin also said earlier this month it plans to invest $750 million to add earthmover tire production at its plant in Anderson, South Carolina and expand output at another factory in the state. The company, which ranks behind Bridgestone of Japan in global production, raised 1.2 billion euro in a 2010 share issue to finance an emerging market expansion adding the equivalent of one new plant annually.