Navitas stock soars as company advances 800V tech for NVIDIA AI platforms
Investing.com -- Michelin (EPA:MICP) ADRs fell over 5% after the French tire manufacturer significantly reduced its financial outlook for 2025, citing deteriorating business conditions, particularly in North America.
The company announced it now expects Segment Operating Income (SOI) at constant exchange rates to be between €2.6 billion and €3.0 billion, down from its previous forecast of above €3.4 billion. Free cash flow before mergers and acquisitions is now projected between €1.5 billion and €1.8 billion, compared to the earlier guidance of above €1.7 billion.
Michelin pointed to a sharp deterioration in its North American business, where third-quarter sales volume decreased by nearly 10%. The company faced "plummeting demand" from original equipment manufacturers in the truck and agriculture sectors, weak replacement truck tire sales reflecting a soft economy, and headwinds in consumer sales.
Despite posting YoY volume growth in regions outside North America during the third quarter, the company noted that its overall competitiveness has been impacted by tariffs. Additionally, a weaker-than-expected U.S. dollar exchange rate (1.17 versus 1.15) has further affected the group’s free cash flow.
The tire maker described the current business environment as "chaotic" with "near-term uncertainties weighing on demand" from both business-to-consumer and business-to-business customers.
Michelin plans to provide more details about its third-quarter sales performance and updated 2025 outlook during its conference call scheduled for October 22, 2025.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.