October 18, 2018 / 4:40 PM / a month ago

Michelin cuts market forecasts on EU emissions squeeze, China slowdown

PARIS, Oct 18 (Reuters) - French tyre maker Michelin cut its full-year market forecasts on Thursday and said a sales slowdown would worsen in the fourth quarter, blaming weaker Chinese vehicle demand and new emissions standards that have hit European registrations.

The company also posted a 5.2 percent increase in third-quarter revenue to 5.615 billion euros ($6.44 billion) as it reported sales four days earlier than planned.

Michelin, which had previously pledged to increase full-year recurring operating profits, said on Thursday that its growth would amount to at least 200 million euros.

But it slashed 2018 market growth forecasts: to 0.5 percent for car tyres instead of the previously forecast 1.5 percent; and to a 1.5 percent decline in truck tyres instead of a 0.5 percent expansion.

The company reiterated its structural cash-flow goal for 2018.

$1 = 0.8715 euros Reporting by Laurence Frost; Editing by Sudip Kar-Gupta

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