Tire manufacturing company, Michelin, has lowered its guidance for 2025 following a sharp decline in sales in North America, compounded by a decline in the dollar.
The company now expects operating income between 2.6 billion euros and 3.0 billion euros, which is down from the previous guidance of 3.4 billion euros.
This comes as the tyre manufacturer posted sales volume growth in every region except North America for the third quarter sales.
In North America, sales volumes fell almost 10%, with “plummeting demand for truck and agriculture segments, a weak sell-out market in truck replacement tyres that reflected the soft economy, and headwinds in sales to consumers.
"On the margin front, group competitiveness has been impacted by tariffs," Michelin said in a statement.
North America is the company’s largest market, and despite manufacturing locally to avoid tariffs, Michelin is seeing a knock-on impact from weaker car sales after manufacturers were forced to hike prices and customers became more cautious.
Michelin also lowered its expected free cash flow before M&A to between 1.5 billion euros and 1.8 billion euros, down from more than 1.7 billion euros, due to the weaker dollar.
