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Tyre maker Michelin confirms 2018 guidance despite China slowdown

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Tyre maker Michelin confirms 2018 guidance despite China slowdown
FILE PHOTO: Formula E - FIA Formula E Paris ePrix, Paris - 18/05/17. A mechanic balances a new Michelin tire in the pits. REUTERS/Benoit Tessier/File Photo   -   Copyright  Benoit Tessier(Reuters)
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PARIS (Reuters) – French tyre maker Michelin <MICP.PA> on Thursday confirmed its 2018 financial outlook, saying that signs of growth in Europe and North America would offset a slowdown in China, and the impact of foreign exchange movements and commodity prices.

“The global replacement passenger car and light truck tire market is benefiting from growth in the European markets, which is offsetting a slowdown in the Chinese market”, Michelin said in a statement.

“The rise of the U.S. dollar against the euro is offsetting the negative impact of currency depreciation in emerging markets, notably the Argentine peso and the Turkish lira, the currencies of countries in which the group has substantially increased its prices,” it added.

Michelin’s 2018 guidance is for sales volume growth in line with that of global tyre markets, and an increase in recurring operating profit, combined with structural free cash flow of above 1.1 billion euros (997 million pounds).

(Reporting by Sudip Kar-Gupta; Editing by Emelia Sithole-Matarise)

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