Results and sales

Group sales reflected OE markets downcycle across segments and contextual headwinds in Specialties, with continued mix improvement.

• PC/LT tire demand supported by Replacement markets in Europe and North America. Dealer inventory levels close to normal, with ongoing replenishment of Winter tires in Europe. OE demand deteriorated gradually, with Q3 down 9% in Europe and 5% in North America. 

• Truck tire markets outside China reflected moderate economic growth, with North America inflated by massive imports of Asian tires in the first half. OE demand was weak throughout the year, with Q3 demand down 23% in Europe and 14% in North America.  

• Specialty tire markets were mixed over the period: Agricultural and Construction OE fell sharply, Mining demand was soft due to gradual inventory drawdowns, Aircraft and Two-wheel trended upwards.  

• Polymer Composite Solutions markets temporarily declined vs. high 2023 comparatives.  

• Volumes declined by 5.3% over the period, of which a 7.1% decrease in Q3, reflecting the substantial drop in OE across every segment, contextual headwinds in Mining, and a sustained focus on selected where-to-play market segments. 

• PC/LT sales of 18-inch and larger tires grew sharply and sustained the MICHELIN brand’s market share. The Mining tire business strengthened its core market positions.  

• The mix effect continued to improve, to 2.0%, demonstrating the Group’s performance in priority market segments across all businesses. 

• The price effect softened to a negative 0.3%, as the third quarter turned positive after a first half hindered by indexation clauses.  

• Based on revised sell-in markets scenario, sales volumes are now expected to end the year within the [-6%; -4%] range. 

• 2024 guidance has been adjusted, with segment operating income at constant exchange rates around €3.4 billion (vs. more than €3.5 billion previously) and free cash flow excluding M&A now estimated at more than €1.7 billion (vs. more than €1.5 billion previously).