Michelin H1 sales slide 3.4% after euro strength – Money News
Investing.com — Michelin reported a 3.4% drop in first-half sales to €13 billion, citing currency headwinds and softer tire volumes, significantly in Original Equipment markets.
The company said that the strengthening of the euro lowered sales by 1.5%, with the influence intensifying to three.6% within the second quarter.
Tire volumes declined 6.1%, largely attributable to weak point in Truck, Agricultural, and Infrastructure tire markets.
Replacement tire volumes had been more secure, falling simply 1% from 2024 ranges. Despite the amount drop, Michelin (EPA:MICP) benefited from a sturdy price-mix impact, which added 4.0% to sales.
The company mentioned the MICHELIN model gained ground in focused areas, supported by new product rollouts.
Segment working income got here in at €1.5 billion, or 11.3% of sales at fixed exchange charges.
Segment EBITDA stood at 18.6%, although free money movement earlier than acquisitions was destructive €102 million, reflecting seasonal working capital wants and low manufacturing volumes.
By section, Automotive & Two-wheel achieved a 12.2% margin, lifted by premium tire sales, with 18-inch and bigger tires now comprising 68% of MICHELIN-brand Passenger tire volumes.
Road Transportation noticed margins fall to five.5% amid sharply decrease North American OE demand.
Specialties posted a 14.5% margin, aided by growth in Aircraft and Mining tires and continued enlargement in high-margin Polymer Composite Solutions.
Michelin maintained its 2025 outlook, assuming no additional financial deterioration.
Managing Chairman Florent Menegaux mentioned the company’s “decisive assets” would help it adapt to volatility, including, “We are determined to further strengthen the resilience of our business model without giving up our medium-term ambitions.”
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