By Jason Chow
PARIS--French tire maker Compagnie Generale des Etablissements
Michelin SCA (ML.FR) said Wednesday that its 2015 first-quarter
revenue rose 1.5% as demand remained weak and it continued to
suffer from price cuts it introduced last year.
Revenue rose to 5.02 billion euros ($5.38 billion), up from
EUR4.76 billion during the same period in 2014.
However, Michelin remained optimistic about its prospects for
the rest of the year, saying it expects lower raw materials costs
to add a favorable impact of EUR600 million over the course of the
year. It also said the low euro would add more than EUR350 million
to operating income for the year.
Michelin said it still expects to grow unit sales "in line with
global trends in its markets," post a return on capital over 11%
and generate EUR700 million in free cash flow in 2015.
Michelin added it will embark on a EUR750 million share buyback
program "over a period of 18 to 24 months."
Write to Jason Chow at jason.chow@wsj.com
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