Tyre maker Michelin has confirmed its guidance for the year and said strong growth in Europe and the Americas was offsetting a slowdown in China and emerging market currency troubles.
The French company's shares rose 3.4 per cent on Thursday morning after confirming its financial outlook of sales volume growth and an increase in operating profit, combined with structural free cash low above €1.1bn (£997m).
Michelin said: “The global replacement passenger car and light truck tyre market is benefitting from growth in the European markets, which is offsetting a slowdown in the Chinese market.”
It also said the equipment market was contracted due to weaker growth in China.
It added: “The truck tyre market remains lifted by strong demand from the freight industry in Americas and Europe, while the specialty markets continue to grow at a fast pace.”
“The rise of the US 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.”