Michelin has downgraded its forecast for the year

Michelin has lowered its operating profit forecast for 2025 from 3.4 to 2.6-3 billion euros after the company's sales on its key market - North America - decreased by almost 10% in the third quarter of the year. Following the forecast downgrade, Michelin's shares fell in price by 11% to a nearly three-year low, notes Reuters.

Michelin produces tires for the North American market at plants in the region, which allows it to avoid the direct impact of new US tariffs on imports, however, the indicators decreased due to a drop in demand for trucks related to consumers becoming more cautious in a rapidly changing situation.

Last week, BMW announced a downgrade of its forecast for the year due to new tariffs in the US, while Mercedes reported a decrease in sales in the third quarter.

Michelin notes that in North America, demand has fallen for both truck and agricultural tires, reflecting the overall economic situation, and analysts at Deutsche Bank say that the sales decline "was much more significant than expected". In addition, Jefferies forecasts that Michelin may also downgrade its forecast for 2026.

In May 2024, Michelin reported that it intends to receive an operating profit of 4.2 billion euros in 2026.