French tire giant Michelin reported a 5.4% decline in first-quarter revenue to 6.2 billion euros, as currency headwinds offset otherwise stable business performance in a challenging global environment.
The company said the decline was entirely due to exchange rate movements, particularly the stronger euro, with sales remaining flat at constant exchange rates.
Demand trends were mixed across segments. While overall tire volumes dipped slightly by 1.4%, Michelin saw strong growth in replacement tire sales, especially for its premium-branded products. This helped offset continued weakness in Original Equipment (OEM) markets, where automotive and truck demand remained subdued in regions such as North America and China.
Profitability remained supported by a favorable product mix, with higher sales of premium and larger tires, although price pressures linked to earlier declines in raw material costs weighed on pricing.
the Consumer segment showed resilience despite a reported decline, Transportation was hit by weak truck markets, and Specialties saw modest contraction. Meanwhile, the Polymer Composite Solutions business posted growth, supported by recent acquisitions.
Michelin said it continues to adapt to an “uncertain environment,” citing geopolitical tensions and supply chain risks, but maintained its full-year 2026 guidance.
“The Middle East conflict is creating uncertainty about global demand. It increases the risk of disruption in raw materials supply and raises purchasing costs, primarily for raw materials and energy,” Michelin said.
Michelin’s two-wheel motor vehicle segment continued to grow in the first quarter of 2026, helped by generally buoyant conditions in the premium segment. Demand was stable in South America, where growth was mainly led by low-cost tire imports.
Source: Investing