Michelin first-quarter sales down 5.4%, hurt by FX impact
Michelin Q1 2024 Financial Results Overview
By Mathias de Rozario
April 29 (Reuters) - French tyre maker Michelin reported a smaller than expected 5.4% fall in first-quarter sales on Wednesday and said negative currency effects accounted for the entire decline.
Market and Operational Impacts
The company continued to be impacted by weakness in the automotive market and by risks of raw materials supply disruption and higher purchasing costs linked to conflict in the Middle East.
Key Financial Highlights
- Sales reached 6.17 billion euros ($7.22 billion), just above analysts' 6.11 billion euro forecast in a company-compiled consensus
- Currency effect of -5.4% was the sole driver of the decline, with U.S. dollar weakness against the euro
Segment Performance
Passenger Car & Light Truck Tyres
Passenger Car & Light Truck tyre volumes were up 1%, led by better sales in the replacement market
Transportation Segment
The Transportation segment recorded the biggest drop in revenue as original equipment volumes continued to be affected by falling markets in North and South America
Polymer Composite Solutions Business
The Polymer Composite Solutions business was the only one to show growth at current exchange rates, with the completion of the acquisition of Cooley Group in January making a "positive contribution to the segment’s performance", Michelin said
External Growth and Future Outlook
- "External growth is also continuing, with the announced integration of Flexitallic as of April 2026, and that of TexTech expected around mid-2026," it added
- No impact seen on aircraft tyres business from the crisis in the Middle East, but there are doubts for the rest of the year
- Confirmed full-year 2026 guidance despite an unpredictable environment
Additional Information
($1 = 0.8547 euros)
(Reporting by Mathias de Rozario in Gdansk; Editing by Kirsten Donovan)
