Michelin sales hit by worse than expected North American market

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By Mathias de Rozario

(Reuters) -French tyre maker Michelin reported a 6.6% decline in sales in the third quarter of the year, below market expectations, citing worse-than-expected business conditions in the North American market

The group’s sales came in at 6.25 million euros ($7.29 million) compared to 6.34 million euros in a company-provided consensus.

“The group’s entire volume loss in the 3rd quarter was concentrated in North America. Outside North America, the group recorded volume growth,” Chief Financial Officer Yves Chapot said on a call with journalists.

The region was particularly affected by a decline in the truck market following the postponement of vehicle emissions regulations in the U.S. and the impact of Chinese retaliatory measures on North American farmers’ incomes.

Michelin also lost sales volumes due to end of a contact with a major North American wholesaler on July 1, Chapot said. He said it will take around 6 months to recover those sales instead of the 3 months previously expected.

Michelin reported a 2.3% negative impact from currency movements in the quarter due to the weak U.S. dollar. Peers OPmobility and Forvia had also flagged impacts from currency movements.

The group, which already lowered its 2025 outlook last week due to the weakness of its North American business, said it will not meet its segment operating income target for 2026 of above 4.2 billion euros but expects it to increase compared to 2025.

It also expects a tariffs impact of around 500 million euros on 2025-2026.

($1 = 0.8575 euros)

(Reporting by Mathias de Rozario in Gdansk, additional reporting from Gilles Guillaume in Paris; Editing by Matt Scuffham)