MICHELIN Releases its Q3 Financial Report as of Sept 30, 2011

Net sales totaled €15,246 million in the first nine months of 2011, up by 17.3% over the year-earlier period due to the combined impact of the following factors:
1. A 9.3% increase in sales volumes, reflecting the Group’s good performance in still expanding tire markets.

2. A 10.0% gain from the price mix, attesting to the efficiency of the pricing policy, which is designed to offset all of the increase in raw materials costs.

3. A 2.4% negative currency effect, primarily resulting from the decline in the US dollar against the euro.

NET SALES BY SEGMENT

PASSENGER CAR AND LIGHT TRUCK TIRES AND RELATED DISTRIBUTION

Net sales rose 10.9% to €7,916 million in the first nine months of 2011.

1. Sales volumes rose by 5.6% thanks to the improved positions in the winter segments and the success of the MICHELIN Super Pilot Sport and MICHELIN Primacy HP lines. This volume growth meant that the Group’s production plants ran at full capacity over the period.

2. Net sales were also supported by the Group’s robust pricing dynamic. The slightly improved mix reflected the impact of the relative growth in OE and Replacement sales and of the sustained improvement in the segment/speed rating mix.

TRUCK TIRES AND RELATED DISTRIBUTION

Net sales for the first nine months amounted to €4,995 million, up 22.0% from the year-earlier period.

1. Sales tonnages rose by 10.5%, in line with demand. However, in a more uncertain environment, notably in Europe, plant production schedules are being adjusted to reflect the shift in demand at year-end.

2. The Group pursued its policy of raising prices in every market, while the mix was adversely affected by the fact that OE sales rebounded faster than replacement sales.

SPECIALTY BUSINESSES

Net sales in the Specialty Businesses rose by 32.3% to €2,335 million in the first nine months of 2011, led by a 24.1% increase in sales volumes and the favorable impact of contractual clauses indexing prices to raw materials costs.

1. Earthmover Tires: net sales were up sharply, reflecting both the upsurge in volumes and the ability to pass on higher raw materials costs to customers. Growth was very strong across every segment (mining, OE and infrastructure).

2. Agricultural Tires: sales were up significantly in both the OE and replacement markets. Higher raw materials costs were passed along in prices and the Group strengthened its positions.

3. Two-Wheel Tires: sales rose over the period, lifted by the improved positions in Europe and Brazil. Sales in the sport touring radial segment climbed sharply on the success of the Pilot Road 3, the first line of siped motorcycle tires.

4. Aircraft Tires: while dampened by the currency effect, net sales rose slightly over the period, in line with the air transport market.

For more details about the Financial Report, please visit www.michelin.com.