Michelin's revenue fell less than forecast
In the first quarter of 2025, Michelin sales fell slightly less than expected, thanks to good performance in the markets for passenger car, scooter and motorcycle tires, reports Reuters.
Compared to the first three months of 2024, the company's revenue decreased by 1.9% to €6.52 billion, while it was forecast that the turnover would fall to €6.43 billion. Sales volumes in physical terms decreased by 7.3%, which was due to low demand in the original equipment segment, and this trend has been observed since the second half of 2024, the company said.
According to Michelin's financial director, Yves Chapot, the company expects some improvement in the OE sector in the second half of 2025, including in the segments of tires for passenger and light commercial vehicles, as well as two-wheeled transport, which are the main ones for the manufacturer. In the first quarter of 2025, sales in these segments increased by 1.2%, which was made possible by an improvement in the performance of the secondary market, while in the truck and specialty tire sectors, Michelin's turnover decreased by 3.5 and 7.3%, respectively.
"Demand for new vehicles is still being restrained by the lingering uncertainties surrounding the rules governing the transition to hybrid and electric technologies, as well as the decline in consumer purchasing power," Michelin said.
The situation is also being affected by new import duties imposed by Donald Trump, given that more than 23,500 people work in Michelin's departments in the US and Canada. "We have already seen that some supply chains of both raw materials and individual components between countries have been redirected, for example, between the US and China," Chapot noted, adding that in this way, suppliers are trying to protect themselves from the impact of new tariffs.
"If we talk about the US market, which accounts for 30% of our sales, then 70% of what we sell on the local market is produced domestically, and this value will grow to 85% if we include Canada," Chapot said.
In summary of the first quarter, Michelin confirmed its forecast for 2025.