Exec says rising rubber prices may signal world recovery
By Helen Massy-Bersford
PARIS, March 16 (Reuters) - French tyre maker Michelin (MICP.PA) still needs time to determine whether the global economy is picking up, and rising rubber prices could provide a clue in a few weeks, a senior executive said on Tuesday. Michelin, which suffered a ten percent drop in sales last year when the auto crisis hit, said last month that rising rubber prices and an unclear market outlook made it "extremely vigilant" for 2010. [ID:nLDE61B079]
"Today it would seem that the rise in raw material (prices) is continuing. For natural rubber prices are extremely firm," managing partner Jean-Dominique Senard said on the sidelines of the launch of its new internet service for travellers, Travel.ViaMichelin.com.
"We'll have to wait a few weeks more to know if that really reflects an economic upturn worldwide, or circumstances more specific to producer countries," he said.
World rubber prices rose throughout 2009, surging in recent months due to a sharp drop in supply.
Referring to the cautious outlook statements the group made last month for 2010, Senard said: "Today I believe the signals we have all around the world show us that we were right to be optimistic, but at the same time cautious."
Launching the new web service, which allows travellers to access practical information about destinations and prepare a personalised "travel book" in advance, Senard said that travel guides and maps represent only 1 percent of Michelin's revenues -- 14.8 billion euros last year -- but raise brand awareness.
Michelin's founders, brothers Edouard and Andre Michelin, made the group's first foray into guide books, publishing the distinctive red-covered Michelin guide, which is now in its 101st edition.
Italy's Pirelli (P7P.MU) PIRI.UL (PECI.MI) said on Tuesday that the tyre market showed double digit growth in the first quarter, compared with its weak performance in the year-earlier period.
(reuters.com)
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