Michelin sales up sharply

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French tyre maker Michelin said Thursday its first quarter sales jumped 28.1 percent to 5.0 billion euros ($7.3 billion) as customers bought early to get ahead of further expected price rises.

Michelin said a sharp increase in volumes compared with early 2010 reflected early purchases as prices, reflecting higher raw material costs, continued to rise.

The company said it expected sales by volume to gain 6.5 percent over the full year but this target could be revised up depending on how sales progress in the next few months.

It said its price increases meant it was able to cover nearly 80 percent of the 1.8 billion euros increase in its raw material costs.

© 2011 AFP

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