PARIS, Oct 19 (Reuters) - Michelin’s quarterly sales rose 3 percent on the strength of demand from vehicle manufacturers, the tyre maker said, sticking to 2017 goals amid a worsening currency situation.
Michelin’s group revenue advanced to 5.335 billion euros ($6.32 billion) from 5.179 billion a year earlier, the Clermond-Ferrand, France-based company said on Thursday.
Sales of replacement tyres were weaker, but should see renewed growth in the final months of 2017, Michelin said. The company stuck by its key goal to deliver an increase in full-year recurring operating income before currency effects.
But worsening exchange rates are expected to wipe 110-120 million euros off 2017 earnings, Michelin predicted, a bigger impact than the 85-115 million figure it had predicted last month, when it revised a previous “neutral” currency outlook. ($1 = 0.8448 euros) (Reporting by Laurence Frost, Editing by Sarah White)