Michelin Cie Gen Unsp/Adr (MGDDY) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Ladies and gentlemen, welcome to the Michelin 2025 first quarter sales conference call. I will now hand over to Mr. Yves Chapeau, General Manager and Group CFO. Please go ahead, sir. Thank you. Good evening, ladies and gentlemen. Following the publication of our first quarter sales data, I will try during the next 15 to 20 minutes to give you some colors about these figures and then to project ourselves over the full year. First, when we look at the global tire market, they have been demonstrating very different patterns during the first quarter of 2025. Original equipment market have dropped across all business segments, with the exception of the passenger car tire original equipment market in China, which was supported by government subsidy. If we look at Europe and North America, both passenger car, truck and bus, and agriculture's original equivalent market stepped down at a double-digit pace. Minus 13% for PCLC European OE market, minus 12% for truck tire OE market, minus 14% for truck tire oil market in North America. And that has heavily impacted our top line, obviously. The second element is that replacement markets have posted limited growth in the context of tariff announcement and some import anticipation. So in Europe, You see that the passenger car market grew by 6% in North America by 1%. In China, on the contrary, due to a very shy construction trend, the market decreased by 1%. And as far as the truck market is concerned, outside China, where we have a very limited presence, the market grew by 1% for replacement in Europe and decreased by 3%. In North America, we have to keep in mind that during the first half of 2024, there was a huge inflow of tires coming from Southeast Asia in the U.S. in anticipation of tariffs that have been implemented in Septe...