Michelin & Cie., the world’s second-largest tiremaker, said cash flow may be positive in the first half as it slashes spending.

“We’re doing everything we can to make that happen,” Chief Financial Officer Jean-Dominique Senard said today on a conference call after reporting a 14 percent drop in first- quarter sales to 3.51 billion euros ($4.59 billion). He’d previously predicted positive cash only for the full year.

Pricing remains firm and Clermont-Ferrand, France-based Michelin is reducing capital expenditure “rather sharply” as it seeks to cut investment 45 percent this year, Senard said. The company said this month it would close a BFGoodrich plant in Alabama that employs about 1,000 workers.

Like other tiremakers, Michelin is being squeezed as the global recession crimps demand for cars, trucks and tire-wearing road-haulage services. The company, whose revenue figure was in line with analyst estimates, anticipates a recovery in sales later in 2009 after an extended decline in the first half.

Truck-tire revenue fell 24 percent to 1 billion euros in the quarter as industrywide sales plunged 62 percent in Europe and 45 percent in North America, Michelin said. Revenue from car tires fell 9.8 percent to 1.95 billion euros as demand from North American auto manufacturers halved.

Michelin recorded a 7.6 percent decline in sales of tires for planes, agricultural equipment and earthmovers used in mining and construction, which amounted to 561 million euros.