- Consolidated Q1 2023 sales up 7.4% in weak markets, benefiting from premium positioning. 2023 guidance confirmed.
According to the company’s website news release on April 26, 2023:
Q1 2023 sell-in markets in Europe and North America were characterized by inventory reductions in a context of improving supply chains, while Q1 2022 was boosted by inventory replenishment:
- PC/LT tire markets contracted by 3%, impacted by replacement demand in Europe and North America. OE markets were slightly positive but still well below 2019 levels.
- Truck tire markets outside China declined by 2%, as robust OE sales were more than offset by slowing RT demand, particularly in Europe and North America.
- Specialty tire markets remained strong, especially in the Mining and Aircraft segments, but were weaker in Construction and Two-wheels.
- Non-tire markets continued to expand in such segments as general industrial, mining, energy and fleet services.
Consolidated sales rose by 7.4% to €7.0 billion over the period, benefiting from premium positioning. The growth reflected the net impact of:
- A 6.6% decline in volumes, stemming primarily from weaker PC/LT and Truck sell-in demand, with Eastern Europe accounting for 25% of the decrease.
- A 12.3% price-mix effect, reflecting the Group products’ quality and performance. The growth in high-value segments and strong Mining tire sales have more than offset an unfavorable OE/RT mix.
- A 15% growth in non-tire sales, both High-Tech Materials and Fleet Services.
- A 0.8% gain from the currency effect, reflecting mainly the USD/EUR evolution.
FULL-YEAR GUIDANCE
- The Group confirms its projected scenario in markets trending towards the lower end of the initial ranges. Sales volumes are still expected to end the year within therange.
- 2023 guidance is confirmed, with segment operating income above €3.2 billion at constant exchange rates and reported free cash flow excluding M&A of more than €1.6 billion.
