PARIS (Reuters). Michelin French tyre manufacturer, France, said Monday that it expects to make more this year than pre-pandemic profits. This was because of better-than expected 2021 results, thanks in part to price and volume increases, which helped offset inflationary pressures.

It expects that its segment operating profit will rise to over 3.2 billion euro ($3.6 billion). This is more than the 3.01 trillion euros it recorded in 2019. The increase in profitability follows earlier promises to restore pre-pandemic levels by 2022.

However, recovery rates will vary by market. “Some markets may be higher than 2019, but, for instance, the original market for vehicle parts might not have returned yet to 2019 levels,” Yves Chapot, Chief Finance Officer at Reuters.

Michelin has tyres that fit three types of vehicles: trucks, passenger cars and aircraft tyres.

The firm predicts a 0% to 4% increase in light truck tire market growth this year. According to the firm, truck tire market growth is expected to increase by between 1-5%.

Chapot explained that replacement markets for light trucks are at 2019 levels. Original equipment might still have some problems during the first quarter, but will likely rebound within the second, or possibly the final third of the year.

Michelin’s strongest segment, specialty tyres should see a 6%-10% increase, again helped by agriculture and mining, but also by an uptake in the market for aircraft tyres.

Sales at the company rose by over 16% last year to 23.80billion euros. That’s more than double the analyst forecast. Operating profits reached 2.97 billion Euros in the company, approximately on par with forecasts.

Chapot explained that the overall results for 2018 have been improved mainly due to three factors. He cited volume, which was 4.5% less than 2019, price rises, improvement in product mix, and the incorporation of new companies since 2018.

Chapot stated that the last year saw 1.2 billion euros inflators. This was partly due to inflators in raw materials and (factors outside of raw materials) such as energy, transport, shipping, or maritime shipping.

He said that the company anticipates inflationary pressures to be similar in 2022 and will attempt to mitigate them using the price-mix effect, which it used last year.

Chapot stated that Michelin was not exposed to tensions arising from recent conflicts between Russia and Ukraine, where it imports raw materials.

He said that the company doesn’t expect any immediate impact from recent protests by truck drivers in Canada.

($1 = 0.8848 euros)