(Reuters) – Michelin reported on Thursday a 3.4% drop in sales in the first half, in accordance with expectations, the drop in sales volumes that have partially been offset by the rise in selling prices.

The Clermont group recorded sales at 13.03 billion euros over the period, compared to 13.48 billion a year earlier, while analysts were tabling on 13.08 billion euros, according to a consensus provided by the group.

Michelin also has a 6.1% drop in tire volumes.

“Our results in the first half are very strongly penalized by the decline in volumes linked to first rises activities, whether in the automobile, in the truck and in a number of specialties, including the heavyweight, agriculture, infrastructure,” said the director Yves Chapot, during a conference call with journalists.

Michelin continues to see his activity being affected by the slowdown in the automotive market, especially in Europe.

The group, which employed more than 23,500 people at the end of last year on its production sites in the United States and Canada, has faced customs duties imposed by US President Donald Trump since March.

The tire manufacturer thus plans to accelerate its investments in the United States to counter the impact of customs duties.

“We made the choice to be as localized as possible, so 70% of what we sell in the United States is made in the United States,” said Yves Chapot.

The impact of American customs duties amounted to around 65 million euros in the first half. It should reach around 200 million euros over the whole year.

The group has nevertheless confirmed its annual objectives, subject to the absence of a new deterioration in the economic environment in the second half.

(Written by Etienne Breban, with Mathias de Rozario, edited by Kate Entringer)

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