French tyremaker Michelin posted a 0.9 percent rise in first-quarter sales, slightly ahead of analyst forecasts, helped by demand for passenger car and light truck tyres in mature markets and China.
The company confirmed its forecast for an increase in operating income this year, as well as free cash flow of more than 800 million euros ($904 million).
Michelin also said volume growth would outpace global markets this year after rising 3.7 percent in the first quarter, suggesting increased confidence versus its last forecast for "growth in line at least with global trends".
"We confirm our guidance ... revising slightly the volume tendencies," finance chief Marc Henry told analysts on a conference call on Wednesday.
Quarterly group sales reached 5.065 billion euros, Michelin said. A Reuters poll showed analysts had on average expected sales of 5.004 billion, for a dip of 0.4 percent. Sales came within the range of analyst estimates.
Michelin said demand was robust in mature markets for passenger car and truck tyres in the first quarter.
There was "mixed demand in the new markets, with strong passenger car and light truck tyre demand in China, buoyant sales in India and a marked decline in South America".
In speciality tyres, which generate 15 percent of group sales, the market for the mining industry contracted significantly for the third year in a row, Michelin said, as operators cut inventory. The outlook for agricultural tyres also remained unfavourable.
($1 = 0.8847 euros) (Reporting by James Regan; Editing by Maya Nikolaeva and Mark Potter)
