By Gilles Guillaume
PARIS (Reuters) -Shares in tyremaker Michelin fell 4% on Thursday to a six-month low after analysts said weaker than expected third quarter sales volumes as U.S. tariffs hit replacement demand could put full-year results estimates at risk. Michelin shares were down 4.02% at 29.62 euros ($34.39) at 1110 GMT, after touching their lowest level since early April, following updates by analysts after a call with the company on Wednesday. “Volume estimates for 2025 have been revised down to -4.8%, reflecting weaker trends in truck tire demand in the United States,” Kepler Cheuvreux wrote in a note. During the call, Michelin said the replacement tyre market “has been less dynamic over the quarter than in the first semester” and that “it might turn flattish at best: this softening is mostly a consequence of a lower import momentum into North America and Europe observed ahead of tariffs or duties”.
According to a script of the pre-close call provided by Michelin, the company also said that in Europe, tyres sold to automakers for new cars “remains on a downward trend”, reflecting the sluggish European car market. Overall, the sequential improvement in tyres compared with the second quarter was softer than originally thought, while there would be less benefit from pricing than in the prior quarter, according to analysts. “We continue to see risk to the FY25 guide on the back of volume shortfalls throughout the year. Hitting the guide on earnings seems like a stretch or only barely within reach at best. In our view, a change of outlook is already broadly expected by the market,” Deutsche Bank wrote in a note. Michelin will publish third quarter revenue figures on October 22.
($1 = 0.8612 euros)
(Reporting by Gilles GuillaumeEditing by Mark Potter and Susan Fenton)
