fbpx
SA Treads
Advertisement
  • Home
  • Advertise
  • About SA Treads
  • From the Editor
  • International
  • Southern Africa
  • SATreads Digital Issue
  • Podcast
  • Contact Us
No Result
View All Result
  • Home
  • Advertise
  • About SA Treads
  • From the Editor
  • International
  • Southern Africa
  • SATreads Digital Issue
  • Podcast
  • Contact Us
No Result
View All Result
SA Treads
No Result
View All Result
Home International

Michelin: Covid-19 Responsible for 8.3% sales drop

Liana Shaw by Liana Shaw
May 4, 2020
in International
0
0
SHARES
35
VIEWS
Share on FacebookShare on Twitter

In the first quarter of 2020, Michelin saw an 8.3% decline in sales year-over-year, according to the company’s first-quarter statement. Michelin says the decline is due to the “systematic crisis” caused by the COVID-19 pandemic.

Michelin says first-quarter sales declines at current exchange rates, reflecting:

  • An 11.7% contraction in volumes, which accelerated in March (down 21%);
  • A 2.0% gain from the price-mix; and
  • A 1.0% increase from changes in the scope of consolidation.

Michelin says global tyre demand dropped in the first quarter, as lockdown policies gradually spread around the world, impacting every business segment. Passenger car and light truck tyre markets dropped 15% after carmakers suspended production and consumers went into isolation, and truck tyre markets fell by 17% year-over-year, the company reports.

In the specialty businesses, certain mining markets and the replacement agricultural tyre markets showed some signs of resilience, Michelin says.

To mitigate the financial impact of the impending deep recession, in mid-March Michelin says it implemented the following measures:

  • Tracking supply and demand on a weekly basis to keep inventory under control;
  • Reducing capital expenditure by €500 million;
  • Reducing the dividend submitted to shareholder approval by €330 million;
  • Suspending the share buyback program, except for the firm commitments outstanding for 2020; and
  • Reducing overhead costs.

Michelin says it is reaffirming that it has “the sources of financing in place to deal with the uncertainty surrounding the crisis.” The company says that stress tests, based on volumes declining by between 20% and 35% over the full year, have shown that Michelin has sufficient cash and cash equivalents, without drawing down its confirmed back-up lines of credit.

Michelin says so far the direction of the pandemic and its economic impacts remain too uncertain to issue any reliable market forecasts and a related profit scenario. Michelin adds at a time of steeply declining raw material prices, the company expects to see a more positive net price-mix/raw materials effect, which should slightly attenuate the much more pronounced impact of lower volumes.

Previous Post

Dunlop cautions, take care of your tyres during and post-COVID-19 lockdown

Next Post

Goodyear Q1: sales down 15% from 2019, net loss of $619M

Liana Shaw

Liana Shaw

Next Post

Goodyear Q1: sales down 15% from 2019, net loss of $619M

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

  • Trending
  • Comments
  • Latest

14 of the best car tyres for 2019

May 6, 2019
Diversity, inclusion and new face of business – An exclusive with Jacques Fourie

Diversity, inclusion and new face of business – An exclusive with Jacques Fourie

Sep 14, 2020
Bridgestone to suspend manufacturing activities in and export to Russia

Bridgestone to suspend manufacturing activities in and export to Russia

Mar 14, 2022
SA Treads Digital Dec./Jan. 2021  – Release

SA Treads Digital Dec./Jan. 2021 – Release

Dec 15, 2020
Diversity, inclusion and new face of business – An exclusive with Jacques Fourie

Diversity, inclusion and new face of business – An exclusive with Jacques Fourie

4
SUPAQUICK ON AGGRESSIVE EXPANSION PROGRAMME POTENTIAL

SUPAQUICK ON AGGRESSIVE EXPANSION PROGRAMME POTENTIAL

4
MIND THE POTHOLE! – By Liana Shaw

MIND THE POTHOLE! – By Liana Shaw

4

Vipal Rubber celebrates 15 years of partnership with Tyre & Retread Supplies in SA

3
Nokian Tyres Ground King tire with Intuitu – The winning tire on all surfaces

Nokian Tyres Ground King tire with Intuitu – The winning tire on all surfaces

May 24, 2022
GROWING INTEREST FROM EXHIBITORS IN FUTUROAD EXPO

GROWING INTEREST FROM EXHIBITORS IN FUTUROAD EXPO

May 23, 2022
Tyrexpo Asia Singapore on Track for 2023

Tyrexpo Asia Singapore on Track for 2023

May 20, 2022
RMI AND ITS ASSOCIATIONS GIVE FULL SUPPORT TO AUTOMECHANIKA JOHANNESBURG

RMI AND ITS ASSOCIATIONS GIVE FULL SUPPORT TO AUTOMECHANIKA JOHANNESBURG

May 19, 2022

Recent News

Nokian Tyres Ground King tire with Intuitu – The winning tire on all surfaces

Nokian Tyres Ground King tire with Intuitu – The winning tire on all surfaces

May 24, 2022
GROWING INTEREST FROM EXHIBITORS IN FUTUROAD EXPO

GROWING INTEREST FROM EXHIBITORS IN FUTUROAD EXPO

May 23, 2022
Tyrexpo Asia Singapore on Track for 2023

Tyrexpo Asia Singapore on Track for 2023

May 20, 2022
RMI AND ITS ASSOCIATIONS GIVE FULL SUPPORT TO AUTOMECHANIKA JOHANNESBURG

RMI AND ITS ASSOCIATIONS GIVE FULL SUPPORT TO AUTOMECHANIKA JOHANNESBURG

May 19, 2022

Recent News

Nokian Tyres Ground King tire with Intuitu – The winning tire on all surfaces

Nokian Tyres Ground King tire with Intuitu – The winning tire on all surfaces

May 24, 2022
GROWING INTEREST FROM EXHIBITORS IN FUTUROAD EXPO

GROWING INTEREST FROM EXHIBITORS IN FUTUROAD EXPO

May 23, 2022

Download Latest SATreads Digital Magazine

  • About
  • Advertise
  • Privacy & Policy
  • Contact

© 2020 - SA Treads news & tyre portal

No Result
View All Result

© 2020 - SA Treads news & tyre portal