French tyre maker Michelin raised its forecast for full-year free cash flow before acquisitions to 2.3 billion euros ($2.4 billion) on Tuesday, from 2 billion euros.
“Tire demand remained strong in July and August, as automakers continued to replenish inventory, but fell 10% year-on-year on the month of September as strikes called at a number of auto plants weighed heavily on monthly output,” it said.
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The United Auto Workers strike in the U.S. has resulted in more than 34,000 union members working at Ford, General Motors and Stellantis joining picket lines, impacting car production.
Michelin said in a statement that its sales for the first nine months rose 2% year-on-year to 21.2 billion euros and confirmed its 2023 forecast for segment operating income at constant exchange rates.
Non-tyre sales, which Michelin wants to account for 20-30% of its total sales by 2030, rose 12.6% in the period. It is a signficant development and will help the tyre industry.
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