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(12/02/2004) COMPAGNIE GENERALE DES ETABLISSEMENTS MICHELIN : Full-year 2003 net sales: EUR 15.4 billion - Sales
COMPAGNIE GENERALE DES ETABLISSEMENTS MICHELIN
Full-year 2003 net sales: EUR 15.4 billion
Sales volumes: +3.7% (a)
February 12, 2004
At constant scope and exchange rates, 2003 net sales are up 5%. Given the
continued appreciation of the euro, especially versus the US dollar, and further
to the consolidation of Viborg in Group accounts in the 4
th
quarter (+EUR 313
million in Group net sales), net sales are down 1.8%.
Operating conditions (tire markets, exchange rates, raw materials...) were
globally in line with Group expectations as indicated upon publication of 3
rd
quarter net sales on October, 22.
| (in EUR million) | 2003 | 2002 | | Consolidated net sales | 15,369.8 | 15,645.1 | | Excluding the impact of | N/A | 14,342.5(b) | | exchange rate variations | | | | | 4th quarter 2003 | 4th quarter 2002 | | | 4,221.1 | 3,958.9 | | Excluding the impact of | N/A | 3,677.4(b) | | exchange rate variations | | |
| | 2003 | 2003 | 4th quarter | 4th quarter | | | | | 2003 | 2003 | | | Total | change | Total | change | | | 2003/ | 2002 | (4th quarter 03/4th | quarter 02) | | | In EUR million | Accrued % | In EUR million | Accrued % | | | -275.3 | -1.80% | 262.2 | 6.60% | | Of which exchange rates : | - 1,302.6 | -8.30% | -281.5 | -7.10% | | Volumes : | 477.2 | 3.30% | 214.4 | 5.80% | | Price/Mix : | 237.6 | 1.60% | 16.7 | 0.40% | | Scope of consolidation : | 312.6 | 2.10% | 312.6 | 8.00% |
(a) Evolution of Group sales volumes (in tons) of tire products. Distribution, maps and guides and suspension systems sales not included.
(b) Net sales for 2002 recalculated at 2003 exchange rates
1. Analysis of the impact on the change in net sales
The main factors impacting financial year 2003 net sales were as follows:
- Positive impact (+3.3%) of higher sales volumes. Sales volume expressed in tons was up 3.7%
compared to 2002.
- Positive price / mix effect of +1.6% at constant exchange rates. One should note a bare +0.4%
price/mix effect in the 4
th
quarter due to the strong rebound of OE markets for commercial vehicles.
- Negative impact (-8.3%) of exchange rates as a result of the continued appreciation of the euro
against all currencies, especially North and South American and Asian currencies.
- Lastly, positive 2.1% scope effect due to a change in Group scope of consolidation compared
to 2002. Following acquisition of the European tire distribution activities of Viborg effective March
31, 2003, Viborg - which was being integrated into Euromaster - appeared in the 4
th
quarter
consolidated accounts of the financial year as of April 1
st
. The corresponding impact to Michelin
group net sales amounted to EUR 313 million.
If flows from the above observations that excluding the impact of currency fluctuations and changes in
scope of consolidation, Michelin net sales posted a 5.0% increase.
2. Evolution of World Tire Markets
Tire markets fared slightly better than Group expectations. European replacement markets, in particular
the passenger car and light truck market, showed surprisingly strong growth despite the current
economic conditions.
| Passenger Car | Replacement | Original | | & Light Truck | | Equipment | | (In units) | Market | market | | | 2003 | 2003 | | Total | NA | NA | | Europe(c) | 5.40% | -3.60% | | North America(a) | 0.40% | -3.00% | | South America | NA | NA | | Asia | NA | NA |
NA: Not Available
| Truck | Replacement | Original Equipment | | (In units) | Market | market | | | 2003 | 2003 | | Total | NA | NA | | Europe(b) | 2.30% | + 2.8%(c) | | North America(d) | + 1.5%(e) | 4.60% | | South America | NA | NA | | Asia | NA | NA |
(c) Western (15 main markets) and Eastern Europe (excl. Community of Independent States)
(a) United States, Canada and Mexico
(b) Western Europe (15 main markets)
(c) Power units market
(d) United States, Canada and Mexico
(e) Radial + bias tire market
- in Europe
The Passenger Car and Light Truck tire replacement market rose 5.4%, well above the long-term
2 to 3% trend generally observed in Europe. 2003 posted sustained growth throughout the
period (+5.2% in H1 and +5.5% in H2) in almost all the tire segments. While the high performance,
4x4 and winter segments that have been buoyant for the last five years continued to perform well
(respectively 14%, 14%, 9%) in 2003, decline in the mass market segment was capped at -1% as
opposed to-4/-5%.
The Passenger Car and Light Truck Original Equipment market declined by - 3.6% as a
consequence of the production cuts decided by the European car manufacturers in the 2
nd
and 3
rd
quarters. On the other hand, the market witnessed a positive 0.5% growth in the 4
th
quarter as
some car manufacturers increased output, following improved car sales in some European countries.
In Truck replacement, the Western European market was up 2.3% year-on-year and down 2.8% in
the fourth quarter. Following the growth of the market noticed in the first six months of 2003 driven
by advance purchasing, ahead of price increases announced by various tire makers, the market
remained flat in the second half of the year. In Eastern Europe, the product-mix continued to
improve in favor of Western-like modern truck tire solutions (radial as opposed to bias tires, drop
center wheel as opposed flat rim). The retread market continued its long-term decline due to the
gradual exit of small retread actors as a result of tighter EU regulations.
The Truck Original Equipment market was contrasted. The power units segment was up 2.8%
year-on-year although still below 2000 levels (-8.5%). Registrations in Western Europe were slightly
down while exports outside Europe showed signs of improvement. The trailer market was noticeably
weak, as a result of declining demand from the trucking industry and financial difficulties
experienced by several European trailer manufacturers.
- in North America
The Passenger Car and Light Truck Tire Replacement market was up 0.4% year-on-year, against
a -0.3% decline at end September. The rebound in the second half of the year has been mostly
fuelled since June by the mechanical recovery of the SUV segment, after two years of decline in the
wake of the two Firestone recalls (2000 & 2001). Long-term trends remain unchanged, with an
improved market-mix: SUV and performance tire segments continued to grow whereas mass-market
fell 4.8% on 2002. One should note that, in 2003, the market reverted to its long term moderate
growth of ‘premium' brands with the latter's market share consolidating and temporarily benefiting
‘value' brands.
On the Passenger Car and Light Truck Original Equipment market, the -4.1% downward trend
observed at end September swung back in the 4
th
quarter, to + 0.7%. At year end, the market was
down -3.0%. As in the case of the replacement market, the SUV and High Performance segments
continued to outperform while the mass market segment was down 14%.
In Truck, the positive evolution of the replacement market (up 5.1% in the 4
th
quarter and 1.5% for
the full year 2003) can be explained by the first signs of recovery of the US economy and the price
increase announcements by the major tire manufacturers during the 4
th
quarter. The market,
however, remains 1.6% short of its 1999 level.
In Original Equipment, overall, trends are encouraging: the market showed an aggregate 4.6%
increase and the 4
th
quarter (up 18.7%), saw the first evidence of rebound of the power unit segment
after 3 consecutive difficult years . One should bear in mind that the 4
th
quarter 2002 posted a
significant slowdown after a very strong 3
rd
quarter that had benefited from advance purchases of
‘Class 8' trucks ahead of the introduction of new emission standards effective 1 October, 2002. The
fleet of ‘Class 8' tractors purchased during the peak years from 1997 to 1999 was now four to six
years old and will have to be renewed in the coming years. In addition, the inventory of good low
mileage, late model used trucks that was weighing on the market in 2001 and 2002 has disappeared.
The trailer market also showed solid growth in 2003 after low 2001-2002 sales and due to ageing
trailer fleets in North America.
- In South America, most of the other South American countries continued to face difficult economic
conditions whereas the Brazilian and Argentinean economies were gradually recovering.
Nevertheless, one should note the strong pick-up in OE truck markets as well as the continuing
radialization of the truck market.
- In Asia, the situation varies widely from country to country.
In China, the third largest market behind Japan and South Korea, Passenger Car and Light Truck tire
replacement markets have enjoyed the same dynamic growth as in recent years. The Japanese
Replacement market, by contrast, continued to stagnate. Passenger Car and Light Truck Original
Equipment markets also showed buoyant growth in China and in South Korea. In Japan, the export
business remained high.
The Chinese radial Truck tire market posted growth trends almost as strong as in 2002, but the
Japanese replacement market was down about 4.3% compared to its 2002 level (itself some 3%
below 2001).
- The Middle-East and African region benefited in 2003 from further improvement in Turkey's
economic health and improved economic conditions in the Persian Gulf, mostly due to the sustained
high level of crude oil prices. However, markets remained difficult in Africa due to the various
economic and political problems plaguing this area.
3. Evolution by Michelin business segment
| Net sales | 2003 | 2003 / 2002 (in %) | | | (in E million) | | | Group | 15,369.8 | -1.80% | | Passenger Car & Light truck | 7,456.8 | -6.20% | | Truck | 3,968.5 | 0.60% | | Other activities | 4,859.3 | 4.80% | | Inter-sector eliminations | -914.8 | 3.50% |
Sales volume variations
(change in %, 2003 / 2002)
| | Total | Replacement | Original Equipment(a) | | Group (in tons(b)) | 3.70% | 4.10% | 3.00% | | Passenger Car & Light Truck | 0.40% | 2.60% | -4.40% | | (in units sold) | | | | | Truck (in units sold(c)) | 4.20% | 4.80% | 3.00% | | Other tire activities (in tons) | 2.10% | 0.90% | 5.00% |
(a) Original equipment : sales to vehicle manufacturers
(b) Refers to the sale of tire products. Distribution, maps and guides and
suspension systems sales not included.
(c) Number of new tires
3.1 Passenger Car & Light Truck
This segment benefited from further improvement in the product and category mix. Excluding the impact
of currency fluctuations, the segment's net sales were up more than 3.6% year-on-year.
Sales volume variations
(change in %, 2003 / 2002)
| Passenger Car/ Light Truck | Total | Replacement | Replacement | Original | Original | | (in units sold) | | | Market | Equipment | Equipment | | | | | | | Market | | Total | 0.40% | 2.60% | N/A | -4.40% | N/A | | Europe(c) | -0.70% | 5.10% | 5.40% | -11.20% | -3.60% | | North America(d) | -1.00% | -0.90% | 0.40% | -1.30% | -3.00% | | Other geographical areas(e) | 9.20% | 7.10% | N/A | 13.90% | N/A |
- In European replacement, the +5.1% year-on-year increase in sales volumes was below the market
owing to the two following factors. In the 1
st
quarter, market growth was driven mainly by
competitor promotional campaigns which Michelin did not follow. Furthermore, in Eastern Europe,
the Group resolved to favor a steady cash-in in euros, raising prices in order to compensate for the
depreciation of local currencies. In the 3
rd
quarter, Michelin gained market share in winter tires in
Germany, Austria and Switzerland. However, higher than expected demand for its new Alpin range in
Europe led to product shortages and an unsatisfactory order fill rate, especially in Eastern Europe.
During the 4
th
quarter, as order fill rates were gradually brought back to satisfactory levels, Michelin
was able to meet demand and to outperform the market. Michelin's product and category mix
further improved over the year, with a strong rise in VZ and 4x4 tire sales compared with 2002.
In North America, sales were down 0.9% compared to the full year 2002. This results from some
losses in market share in both mass market and the H-rated tire segments in the first 9 months of the
year, combined with some capacity shortages in the SUV segment in the second half. Conversely, the
launch in September of the Michelin HydroEdge(tm) range in the mass-market segment and the new
BF Goodrich Traction T/A in the H-rated segment, recorded a strong success. In the 4
th
quarter, the
emphasis was on the quality of the Group market share: the Group's brand mix improved
substantially in favor of ‘flagship' brands and at the expense of ‘private' brands. Price increases up to
5% were introduced on February 1, 2004 throughout the scope of Group products.
In South America, the Group benefited from better replacement markets in Brazil and Argentina
despite continuation of unfavorable exchange rate environment and the closure of the Venezuelian
market to imports.
In Asia, the Group pursued its focused growth policy centered on high added value segments.
In China, sales continued to outperform the market: net Michelin and Warrior branded tire sales grew
more than 30%.
- In European Original Equipment, Michelin has gradually stabilized its market position since the
non-renewal, from August 2002, of the supply contract with General Motors. The Group was even
able to show a gain in market share in the 4
th
quarter.
Similarly, in North America, despite a bear market, Michelin further enhanced its mix. As evidenced
in 2002 and throughout the current year, Group sales clearly outpaced the market and additional
significant market share gains were achieved in the ‘SUV' and ‘Performance' segments. In the light
of the unfavorable raw material pricing environment, price increases were announced early 2004.
(c) Western (15 main markets) and Eastern Europe (excl. Community of Independent States)
(d) United States, Canada and Mexico
(e) Asia, South America, Africa and Middle East
3.2 Truck
Net sales were up 0.6% year-on-year despite highly unfavorable exchange rates. New tire sales volumes
up +4.2% and a better original equipment/ replacement mix together with higher unit prices, enabled
this business to post positive growth.
Sales volume variations
(change in %, 2003 / 2002)
| Truck | Total | Replacement(a) | Replacement | Original | Original | | (in units sold) | | | Market | Equipment | Equipment | | | | | | | Market | | Total | 4.20% | 4.80% | N/A | 3.00% | N/A | | Europe | 2.20% | 3.60% | + 2.3%(b) | + 0.1%(c) | + 2.8%(d) | | North America | 4.80% | 6.00% | + 1.5%e | 2.50% | 4.60% | | Other geographical areas(e) | 6.70% | 4.90% | N/A | 20.30% | N/A |
- In European Replacement, Michelin new tire sales and market share increased compared with the
same period last year. In Eastern Europe, sales, backed by the Group multi-brand strategy, posted
strong growth, especially on the most profitable segments . In a continually declining retread market,
Group sales volumes continued to grow, showing significant progress in Northern and Eastern
Europe.
In North America, Group sales again outperformed the market even if Michelin's sales and market
share have yet to catch up with 2000 levels. Price increases passed in February 2003 have been
sticking and an additional 5% rise was introduced in February 2004. In retread, further progress was
achieved in a market up 0.5%. The opening of 12 new Michelin Retread Technology workshops is
planned in 2004.
In South America, the significant price increases introduced in 2002 and 2003 are holding up and
Michelin radial truck tire sales were up.
In Asia, Michelin's radial tire sales were up again in 2003, especially in China, in line with the trend
recorded for the last 2 years.
In Middle East and Africa, sales volumes posted significant growth: the reopening of the Algiers
factory boosted Group sales and market share in Algeria. In South Africa, in the supportive context of
growing markets and stronger rand, Group sales performed well. In the Middle-East, Michelin sales
also benefited from strong demand.
- In European Original equipment, the trailer segment eroded further, although at a slower pace
than in the first half. This explains why Group sales (power units + trailers) look slacker than the
power unit market. Michelin's strategy is to rebalance its operations in the original and replacement
equipment markets in order to deliver optimal service quality across all markets, while improving its
overall profitability and return on assets.
In North America, the Group's overall market share in original equipment was down slightly in
2003. The strong pick up in trailer segment sales that largely drove market growth was not to the
Group's advantage since it is stronger on the more technical power units segment. Michelin also
applied the strategy described above to strike a better balance of its sales between original
equipment and replacement in North America. In this connection, it reached a first of a series. Sales of Michelin X-One, which is the only wide single tire actually distributed in North America, more
than doubled in 2003.
(a) New tires
(b) Western Europe
(c) Sales power units + trailers
(d) Power units market
(e) Radial + bias truck market USA+ Canada + Mexico
3.3 Other activities
At EUR 4.86 billion, the Other activities net sales are up 4.8% for the full year 2003. The bulk of the
growth was due to acquisition of the distribution activities of Viborg by Euromaster. Excluding changes in
consolidation scope, sales were down 3.5%. US dollar depreciation to the tune of 16.5% against the
euro continued to erode the dollar-denominated net sales of this segment. This was particularly true for
TCI and Earthmover sales after conversion, as they are mostly US dollar-denominated - and also for
Aircraft sales, since the US dollar is the reference currency for most commercial transactions.
With respect to retailing, Euromaster net sales improved in 2003, driven by retail activities in light
vehicles and commercial vehicles and by growing turnover from service operations. However, one should
note that market conditions in the UK remained particularly difficult throughout 2003 with an increased
pricing pressure from other distribution players. In Germany, Viborg net sales began to grow again in the
4
th
quarter 2003. In North America, TCI net sales were up, on the back of significant growth in retread
manufacturing and in consumer tire distribution.
In Earthmover tires, markets, and especially the North American one, recovered in 2003 after 3
consecutive years of decline. Mining companies have benefited from the currently high level of raw
material prices and tended to expand their production capacity. The depreciation of the dollar continued
to impact net sales severely but the environment was supportive with both Group sales volumes and
market share up.
Agricultural tire sales volumes were sharply affected by the decline in the European replacement market
caused by the heat wave that hit Europe during the summer as well as the consecutive drought.
However, Michelin improved its product-mix by focusing on the premium segments of the market. The
Group launched a highly innovative low-pressure solution, Xeobib, that won 4 innovation awards
including Innovation Gold Metal Award at the Hanover Agritechnica Fair. This clearly confirms Michelin's
technological leadership in the agricultural tire industry.
Despite the depressed environment of the airline industry, Michelin Aircraft was able to increase sales
volumes in 2003. The financial year was also a landmark year for radial technology which is becoming the
next standard for the aircraft industry: the radialization rate of new airplanes has now reached 60% and
Michelin signed a contract to supply radial tires for the new Airbus A-380.
The Two-wheel tire business in Europe was affected by supply issues despite growing demand for
Michelin radial motorbike tires. Sales volumes posted good progress in North America through market
share gains in the motocross segment.
Lastly, despite a 3% decline of its market and production over-capacity of the industry, the steel Wheel
manufacturing business posted an increase in sales volumes. In January 2003, the Group announced a set
of measures aimed at reorganizing this business; these are currently being implemented.
* * *
4. Fourth quarter
| Net sales | 4th quarter 2003 | VarQ4 2003/ Q4 2002 (in %) | | | (in E million) | | | Group | 4,221.1 | 6.60% | | Passenger Car & Light truck | 1,911.2 | -4.40% | | Truck | 1,040.6 | 3.50% | | Other activities | 1,592.4 | 32.20% | | Inter-sector eliminations | -323.1 | 28.90% |
Sales volumes variations
(% change, 4
th
quarter 2003/ 4
th
quarter 2002)
| | Total | Replacement | Original | | | | | Equipment(a) | | Group (in tons(b)) | 5.50% | 4.90% | 6.80% | | Passenger Car & Light Truck (in units | 2.90% | 4.40% | -0.80% | | sold) | | | | | Truck (in units sold(c)) | 6.10% | 3.80% | 11.90% | | Other tire activities (in tons) | 4.40% | 1.90% | 10.30% |
| Passenger Car/ Light Truck | Total | Replacement | Replacement | Original | Original | | (in units sold) | | | Market | Equipment | Equipment | | | | | | | Market | | Total | 2.90% | 4.40% | N/A | -0.80% | N/A | | Europe(c) | 5.30% | 7.30% | 4.10% | 1.40% | 0.50% | | North America(d) | 0.00% | 1.30% | 2.40% | -4.10% | 0.70% | | Other geographical areas(e) | 5.30% | 7.80% | N/A | 0.10% | N/A |
| Truck | Total | Replacement(d) | Replacement | Original | Original | | (in units sold) | | | Market | Equipment | Equipment | | | | | | | Market | | Total | 6.10% | 3.80% | N/A | 11.90% | N/A | | Europe | 0.50% | -1.20% | - 2.8%(e) | + 3.3%(f) | + 2.1%(g) | | North America | 9.30% | 1.20% | + 5.1%h | 27.90% | 18.70% | | Other geographical areas(e) | 11.70% | 11.50% | N/A | 13.50% | N/A |
(a) Original equipment: sales to vehicle manufacturers
(b) Refers to the sale of tire products. Distribution, maps and guides and suspension systems sales not included.
(c) Number of new tires
(c) Western (15 main markets) and Eastern Europe (excl. Community of Independent States)
(d) United States, Canada and Mexico
(e) Asia, South America, Africa and Middle East
(d) New tires
(e) Western Europe
(f) Sales power units + trailers
(g) Power units market
(h) Radial + bias truck market USA+ Canada + Mexico
Compagnie Financière Michelin
In 2003, Compagnie Financière Michelin (CFM) ‘s net sales amounted to EUR 15.6 billion, down 1.7% on
last year. At constant exchange rates, by contrast, net sales expressed in euros are up 7.1%. In so far as
Compagnie Générale des Etablissements Michelin has almost the same scope of activities as Compagnie
Financière Michelin, the qualitative comments on net sales apply to CFM as well.
* * *
Full year 2003 earnings will be published on Tuesday February 24, 2004, before the Paris Bourse
opens (8:00am CET).
* * *
Contacts
Eric Le Corre: +33 (0)1 45 66 10 04 / + 33 (0)4 73 32 77 92
eric.le-corre@fr.michelin.com
Laurent Cavard: +33 (0)4 73 32 18 02 / +33 (0)1 45 66 16 15
laurent.cavard@fr.michelin.com
* * *
For more information,
visit the ' Finance ' section at http://www.michelin.com/corporate
Questions / answers
1. You mention operating conditions globally in line with Group expectations as
foreseen on October, 22. Could you tell us the consequences in terms of
operating margin?
On October, 22 2003, upon publication of 9 months sales, Michelin indicated that the Group could
achieve, at constant scope, an operating margin slightly below 2002 (7.8%) based on operating
conditions estimated at end October, including in particular a significant rise in raw material costs,
estimated at 350 million dollars impacting its operating expenses.
Full-year earnings will be released on February 24, 2004.
2. Michelin 2003 sales were impacted negatively by appreciation of the euro versus the USD.
Could you tell us what the extent to which Michelin is sensitive to USD variations ?
Michelin is relatively dollar neutral in a stable situation. The Group earns slightly less than 50% of its
net sales outside of Europe, with 35% of net sales being earned in North America. The majority of its
raw materials, however, is purchased either in dollars, or using the US dollar as a currency base, or in
other currencies that are tied to the dollar. Part of these raw materials is consumed in Europe.
A drop in the dollar/euro exchange rate has the following effects:
- On net sales:
an immediate negative impact on net sales in dollars outside of Europe
- On profits:
. an immediate negative impact on the conversion of North American results for sales outside of
Europe;
. an immediate negative impact on sales realized in dollars from Europe;
. an impact on the cost structure through a drop in raw material prices in Europe.. This impact is
delayed because of a lag time effect on Michelin's supply structure (the average time period
between the purchase of raw material and its inclusion in the cost of goods sold is of 4 to 6
months).
In a stable situation and when considered globally, this effect is relatively neutral at the operating
level. On the other hand, on account of the lag built into the Group cost structure, any drop in the
dollar versus the euro has a negative impact on earnings.
3. Could you tell us what are the consequences of the Viborg acquisition on Group
sales?
For Michelin, additional sales generated by the Viborg acquisition amount to EUR 313 million,
corresponding to the impact of changes in the scope of consolidation versus FY 2002 indicated by
the Group. This contribution to Group sales is in line with the information published on October, 22
2003. This EUR 313m amount corresponds to Viborg sales since its acquisition by from which were
deducted intra-group transactions between Viborg and other Michelin group entities.
Wholly integrated into Group accounts in the scope changes effect, Viborg sales are not therefore
included in other factors affecting sales such as mix / price effect or volume effect.
4. Your competitor Goodyear announced signature of contracts with Volvo,
especially in North America where it becomes the standard supplier. What will be
the impact for Michelin ?
Michelin Group renewed in 2003, its 3- year contracts with Volvo industrial vehicles in Europe and
North America. These agreements concern, in particular, OE supply of truck tires to equip Renault
and Volvo trucks assembled in Europe and Volvo and Mack trucks assembled in North America. In
Europe, Michelin confirms its position as reference tire supplier to Volvo Group. In North America,
the Volvo-Mack agreement gives Michelin the status of preferred supplier and a more balanced
share of Volvo and Mack brand accounts.
These agreements come for Michelin at a time when world production capacities for radial Truck
tires are saturated and when demand is expected to rise in the years to come. It is in line with
Michelin's strategy to better balance its operations in the original and replacement equipment
markets in order to deliver optimal service quality across all markets, while improving its overall
profitability and return on assets.
Note that most truck buyers avail themselves of the opportunity of selecting the tire brand mounted
on their vehicles even if this brand is not the standard equipment defined by the truck maker.
5. The price-mix effect seems to be slowing down. Is this linked with the difficulty in making
price rises stick, or are you suffering from an unfavorable mix?
The price rises announced and passed by the Group in Europe, North America, Asia and the rest of
the world are sticking. The product - mix in particular within the passenger car/light truck activity is
permanently enriched. As a result, the price per ton rises both by product line and market.
On the other hand, consolidated at Group level, the price / mix effect posts slower growth towards
the end of the year 2003, owing to the recovery of OE truck and earthmovers markets, particularly
marked in the 4
th
quarter.
* * *
(C) Companynews
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