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Investing.com -- Michelin (EPA:MICP) expects first-quarter revenue to decline 2% to 3%, missing market expectations as weaker volumes weigh on performance.
The tire manufacturer forecasts volumes to fall between 6% and 8% in the quarter, citing continued softness in original equipment markets and persistent weakness in agriculture and construction.
Shares of the French company were up 3.7% on Thursday at 06:35 ET (10:35 GMT).
These pressures are consistent with recent management commentary but may be new to some investors.
Despite lower demand, Michelin expects price and mix to remain resilient, each contributing about 2% growth. Currency effects are forecast to be slightly positive, while revenue from non-tire activities and scope changes should remain flat.
The updated guidance implies a 3% to 4% drop in revenue year over year, underperforming the consensus compiled by the company in February, which forecast a decline of just 0.4%.
While the shortfall highlights the impact of disrupted OEM production across key markets, Bernstein analysts noted the result is not especially concerning given the broader industry context.
Michelin also signaled continued confidence in its tariff position, though provided no additional detail during the investor call.