Finance
Michelin sales hit by worse than expected North American market
Published by Global Banking and Finance Review
Posted on October 22, 2025
2 min readLast updated: January 21, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on October 22, 2025
2 min readLast updated: January 21, 2026
Michelin's sales in North America fell by 6.6% in Q3 due to challenging market conditions and currency impacts, affecting future outlook.
By Mathias de Rozario
(Reuters) -French tyre maker Michelin reported a 6.6% decline in sales in the third quarter of the year, below market expectations, citing worse-than-expected business conditions in the North American market
The group's sales came in at 6.25 million euros ($7.29 million) compared to 6.34 million euros in a company-provided consensus.
"The group's entire volume loss in the 3rd quarter was concentrated in North America. Outside North America, the group recorded volume growth," Chief Financial Officer Yves Chapot said on a call with journalists.
The region was particularly affected by a decline in the truck market following the postponement of vehicle emissions regulations in the U.S. and the impact of Chinese retaliatory measures on North American farmers' incomes.
Michelin also lost sales volumes due to end of a contact with a major North American wholesaler on July 1, Chapot said. He said it will take around 6 months to recover those sales instead of the 3 months previously expected.
Michelin reported a 2.3% negative impact from currency movements in the quarter due to the weak U.S. dollar. Peers OPmobility and Forvia had also flagged impacts from currency movements.
The group, which already lowered its 2025 outlook last week due to the weakness of its North American business, said it will not meet its segment operating income target for 2026 of above 4.2 billion euros but expects it to increase compared to 2025.
It also expects a tariffs impact of around 500 million euros on 2025-2026.
($1 = 0.8575 euros)
(Reporting by Mathias de Rozario in Gdansk, additional reporting from Gilles Guillaume in Paris; Editing by Matt Scuffham)
Currency hedging is a financial strategy used to reduce the risk of adverse price movements in an asset, typically involving the use of financial instruments such as options or futures contracts.
Economic growth is the increase in the production of goods and services in an economy over a period of time, often measured by the rise in Gross Domestic Product (GDP).
A financial market is a marketplace where buyers and sellers engage in trading financial assets such as stocks, bonds, currencies, and derivatives, facilitating the transfer of funds and investment.
A central bank is a national institution that manages a country's currency, money supply, and interest rates, and oversees the banking system to ensure financial stability.
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