April 29 (Reuters) - French tyre maker Michelin reported a smaller than expected 5.4% fall in first-quarter sales on Wednesday and said negative currency effects accounted for the entire decline.
The company continued to be impacted by weakness in the automotive market and by risks of raw materials supply disruption and higher purchasing costs linked to conflict in the Middle East.
o Sales reached 6.17 billion euros ($7.22 billion), just above analysts' 6.11 billion euro forecast in a company-compiled consensus
o Currency effect of -5.4% was the sole driver of the decline, with U.S. dollar weakness against the euro
o Passenger Car & Light Truck tyre volumes were up 1%, led by better sales in the replacement market
o The Transportation segment recorded the biggest drop in revenue as original equipment volumes continued to be affected by falling markets in North and South America
o The Polymer Composite Solutions business was the only one to show growth at current exchangerates, with the completion of the acquisition of Cooley Group in January making a "positive contribution to the segment's performance", Michelin said
o "External growth is also continuing, with the announced integration of Flexitallic as of April 2026, and that of TexTech expected around mid-2026," it added
o No impact seen on aircraft tyres business from the crisis in the Middle East, but there are doubts for the rest of the year
o Confirmed full-year 2026 guidance despite an unpredictable environment
($1 = 0.8547 euros)
(Reporting by Mathias de Rozario in Gdansk; Editing by Kirsten Donovan)
By Mathias de Rozario
