MICHELIN'S SALES DROP LESS THAN EXPECTED IN FIRST QUARTER

(Reuters) -Tyre maker Michelin reported a slightly smaller than expected drop in first-quarter sales as its core automotive, scooters and motorcycles division outperformed.

Michelin's sales fell 1.9% from a year earlier to 6.52 billion euros ($7.40 billion), compared with a forecast of 6.43 billion euros in a company-provided consensus.

"Volumes were down 7.3% due to lower original equipment sales in all segments, prolonging the trend observed in second-half 2024," the French company said.

Sales at Michelin's core automobile, motorcyle and scooter tyre division, however, rose by 1.2%, driven by growing sales in replacement tyres.

The group, which employs more than 23,500 people at its production sites across the U.S. and Canada, said in February that it was looking at accelerating investments in the United States to counter the threat of tariffs.

On Thursday it said the Northern American market was affected in the first quarter by a global shift to cheaper cars with fewer features and by an influx of low-cost tyre imports ahead of a potential rise in customs tariffs.

"These imports led to only a limited increase in dealer inventories," it added.

Michelin said it maintained its full-year guidance despite a highly uncertain environment this year.

($1 = 0.8807 euros)

(Reporting by Mathias de Rozario in Gdansk; Editing by Kirsten Donovan and Susan Fenton)

2025-04-24T17:11:42Z