Michelin reports plunge in sales

October 27, 2009 08:17:56 AM

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French tyre maker Michelin on Monday said its sales had fallen 10.9 percent in the third quarter on a 12-month comparison to 3.75 billion euros (5.58 billion dollars) amid a slump in global demand.

They were also 12.5 percent lower in the first nine months of the year than over the same period in 2008, the company said in a statement.

Michelin, which is cutting more than 1,000 jobs in France, said it was still aiming to generate positive cash flow in the second half of 2009.

The company said that in the second half of the year it expected "improved profitability versus the first half thanks to the raw materials tailwind."

Michelin in July reported a net loss of 122 million euros in the first half from a net profit of 430 million euros in the same period in 2008.

Sales were down 23 percent by volume in the first half, the group said.