Michelin sales volumes drop in 2024 as Europe slows

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By Mathias de Rozario and Alessandro Parodi

(Reuters) – French tyre maker Michelin reported a 5.1% decline in its full-year sales volumes on Wednesday, in line with market expectations, partly due to a slowdown in sales of new cars and trucks in Europe.

Analysts on average had expected the volumes to drop by 5.2% in the year to end-December, a consensus poll provided by Michelin showed. 

Sales of tyres for new passenger cars and light commercial vehicles fell by 7% in Europe as consumers delayed purchases amid uncertainty around electrification and as some countries, especially Germany, cut electric vehicle subsidies, Michelin said in a statement.

European sales of tyres for new trucks were down 20%.

Michelin said 25% U.S. tariffs on goods from Mexico and Canada announced by President Donald Trump could potentially impact its sourcing and investment strategy, and that it might accelerate investments in the U.S.

“We’re not going to disinvest in Europe to invest in the United States,” Chief Financial Officer Yves Chapot told journalists on Wednesday, however.

The European market accounted for 35.5% of Michelin’s total sales in the first half of 2024, while North America accounted for 38.9%.

The group, which makes tyres for cars, aircraft, bicycles and industrial equipment, proposed a dividend of 1.38 euros ($1.43) per share, slightly higher than the 1.35 it paid on its 2023 results but lower than analysts’ average expectations of 1.46 euros per share.

The company said it expects growth in its segment operating income at constant exchange rates and the generation of free cash flow before acquisitions of more than 1.7 billion euros in 2025.

That is despite a sharp decline in the original equipment business and more depressed markets overall in the first half, Chapot said.

It confirmed its outlook for 2026.

($1 = 0.9667 euros)

(Reporting by Alessandro Parodi and Mathias de Rozario in Gdansk; Editing by Jan Harvey)