The company’s struggle stems primarily from the original equipment sector, where lower sales to automakers continue to drag on total output. While the replacement tire market remains a bright spot—with Michelin-brand volumes climbing 4%—it is insufficient to offset broader weakness. Analysts at Jefferies noted that the recovery timeline has effectively shifted, with the firm now projecting slightly negative volumes for the fourth quarter.
In section Market Quotes
Michelin Shares Slip as Demand Stalls
A 4.5% slide in early Paris trading followed Michelin’s admission that third-quarter sales volumes fell by 0.6%, defying analyst expectations of modest growth. The French tire manufacturer now faces a cooling market, with management abandoning hopes for a volume rebound before the end of the fiscal year.
High import flows and persistent demand softness remain the primary headwinds for the business. Despite these volume concerns, Michelin reiterated its full-year guidance, projecting higher operating income and free cash flow exceeding 1.6 billion euros. Christoph Laskawi of Deutsche Bank observed that while the financial targets remain intact, investor confidence hinges on whether the company can regain its lost volume momentum.
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