UPDATE 2-Michelin Q1 sales fall 14.2 percent

* Michelin Q1 sales fall to 3.5 bln euros

* Says on track to meet FY goal of positive free cash flow

* Shares closed down 2.75 pct before sales released (Adds detail from analyst call)

By Helen Massy-Beresford

PARIS, April 28 (Reuters) - French tire manufacturer Michelin (MICP.PA: Quote, Profile, Research) said first-quarter sales fell 14.2 percent to 3.5 billion euros on Tuesday and said its 2009 focus would be on cash as the industry battles the financial crisis.

Michelin slightly exceeded a Reuters Estimate of first-quarter sales of 3.445 billion euros, based on six analysts' forecasts.

Michelin said in a statement it was well on track toward generating positive free cash flow in 2009. Managing partner and finance chief Jean-Dominique Senard, during a conference call with analysts, did not rule out achieving positive free cash flow in the first half.

Michelin said unit sales fell 24.4 percent, as demand dropped in all its markets except China.

POSITIVE PRICE INCREASES