French tyre maker Michelin reported a 1.9 percent drop in first-quarter sales as steep declines in original equipment demand offset gains in its replacement tyre business and improved product mix.
The Clermont-Ferrand-based company maintained its full-year guidance despite the challenging start to 2025. However, sales fell to €6.5 billion in the quarter ended 31 March, down from €6.6 billion a year earlier.
The company cited a 7.3 percent decline in tyre volumes, primarily due to weakness in original equipment markets across all segments, which continued the downward trend seen in the second half of 2024.
“In a highly volatile environment shaped by geopolitical and macro-economic uncertainties, the Group tightens up its steering and keeps its 2025 guidance unchanged,” Michelin said in its quarterly report.
Michelin’s automotive and two-wheel segment, which accounts for more than half of group sales, grew 1.2 percent despite a 3.3 percent drop in volumes, helped by robust demand for replacement tyres and an enriched product mix.
The company said its MICHELIN-brand tyre sales rose four percent in the replacement market, with particularly strong performance in high-value-added tyre sizes. Sales of 18-inch and larger tyres continued to grow in line with the market and now account for 67 percent of MICHELIN-brand sales, up four percentage points from a year earlier.
The road transportation segment suffered a 3.5 percent sales decline as original equipment markets in Europe and North America plummeted by 12 percent and 14 percent respectively. However, replacement tyre sales increased in the segment’s key markets in Europe, North America, and South America.
The most significant weakness was in Michelin’s speciality businesses, which saw sales drop 7.3 percent. This was driven by a steep decline in original equipment sales of agricultural and construction tyres, which fell by about 30 percent compared with the first quarter of 2024.
Mining tyre sales, however, showed resilience, matching the previous year’s levels despite a high basis for comparison. Aircraft tyre volumes also increased, boosted by growth in air traffic.
Despite the challenging market conditions, Michelin maintained its full-year outlook, expecting to outperform its 2024 segment operating income of €3.4 billion at constant exchange rates and to deliver free cash flow before acquisitions of more than €1.7 billion.
Michelin’s performance reflects the broader struggles in the automotive sector. Original equipment markets for passenger car and light truck tyres dropped 13 percent in Europe and 8 percent in North America. The company attributed this to persistent uncertainty about regulations governing the market’s transition towards hybrid and electric technologies and reduced consumer purchasing power.
In contrast, China’s original equipment market grew 10 percent, supported by government financial subsidies launched in the second half of 2024.
The first quarter also saw several developments for Michelin, including the launch of its new MICHELIN Primacy 5 range. The company says this range delivers an 18 percent increase in tread life while maintaining superior wet grip safety performance, reducing noise, and improving fuel efficiency by 5 percent compared with its predecessor.
Michelin also announced that it had started mining tyre recycling operations at its plant in Chile’s Antofagasta region and signed its first commercial contract for its WISAMO wingsail technology, addressing the challenges of decarbonising maritime transport.
Maxam Expands Solid Skid Steer Range With Non-Marking MS705 NM Tyre
- By TT News
- September 29, 2026
Maxam Tire has broadened its range of solid skid steer tyres by launching the MS705 NM, a non-marking iteration of its current MS705 model. The new tyre targets construction machinery operated indoors or on surfaces where leaving marks is undesirable.
By pairing the resilience of a solid tyre with a non-marking tread compound, the MS705 NM suits jobs that demand protection for finished flooring and other delicate surfaces. Its solid design removes the risk of punctures and sidewall failures while also doing away with regular air pressure checks, which helps lower maintenance demands.
The tyre incorporates a three-stage, all-rubber build and an aperture sidewall that together produce a gentler ride. Steel ring reinforcement internally works to prevent wheel slip, while a heat-resistant cushion centre compound adds durability for tough applications. With this non-marking option, Maxam now gives customers greater flexibility in matching skid steer tyres to specific jobsite needs.
Evonik Reshapes Business Portfolio To Improve Geostrategic Balance
- By TT News
- September 28, 2026
Evonik, a global speciality chemicals company, has outlined a three-year strategy to sharpen its focus and accelerate growth, assigning distinct roles across its business portfolio and setting specific tasks for its major German sites. Targeted growth projects are also intended to improve the group's geostrategic balance. To fund these investments, the company is relying on its Evonik Tailor Made restructuring programme to further reduce its cost base. The plan involves cutting 3,200 jobs worldwide, with roughly 2,150 of those losses falling in Germany.
At the annual strategy meeting, the executive and supervisory boards reviewed plans through 2030. Interim CEO Claus Rettig said the industry faces a structural and economic crisis, and Evonik will use this polycrisis to reshape old structures and improve its positioning. Many parts of the business are still growing, so efforts will concentrate on strengths, future topics and lucrative markets, with better cost positions creating room to manoeuvre.
Transformation will proceed at every level. Healthcare and biotechnology projects in Canada and Slovakia, worth several hundred million euros, will strengthen the portfolio, while business units are aligned by role as growth drivers or cash generators. A new business line, Designed Polymer Solutions, bundles growth areas in aerospace, automotive and gas separation, including biogas and hydrogen. Asia and America offer strong opportunities, and further investments there are under review. Each of the six major German sites will receive a clear profile, with implementation starting shortly.
Evonik is also exiting activities with no internal prospects. Rettig said long-term leadership requires leading in what the company does, and volatility demands flexible responses. Closures of smaller sites fit this approach, and divestments of C4 chemicals and infrastructure are progressing as planned. Tailor Made's second phase begins in 2027 and runs to 2029. Measures will be finalised by late 2026, including unfilled vacancies, early retirements and voluntary severance departures. Chief Human Resources Officer Thomas Wessel said Evonik has long lived social responsibility and maintained intensive dialogue with employee representatives, and this transformation will be completed together.
Continental Tests New TerrainContact A/T2 Across Iceland's Rugged Terrain
- By TT News
- September 28, 2026
Continental recently showcased its new TerrainContact A/T2 tyre during a five-day driving event in Iceland, held from 14 to 18 September 2026. Journalists and invited customers tested the tyre across winding roads, rugged highlands, glaciers and volcanic terrain.
Starting at Þingvellir, the group travelled through Iceland's Western Highlands and the Kaldidalur valley, where gravel routes highlighted the tyre's blend of on-road comfort and off-road traction. The TerrainContact A/T2 targets pickup and SUV owners who mainly drive on pavement but require extra grip when conditions change.
Compared with its predecessor, the tyre offers better wet braking and snow traction while preserving a quiet ride and off-road ability. A new tread compound boosts wet performance, greater tread depth aids snow grip, and optimised zig-zag grooves and traction teeth add control on loose or snowy surfaces. It carries the Three-Peak Mountain Snowflake symbol and is engineered with electric vehicles in mind.
Okan Sen, National Marketing Manager, Continental Tire Canada, said, “The TerrainContact A/T2, as one of the best-balanced performance all-terrain tyres in the market, was developed for drivers who want the freedom to explore without compromising their everyday driving experience. Iceland was the perfect setting to bring that versatility to life, giving attendees the opportunity to experience the tire across the kind of changing terrain it was designed to handle.”
Tyres Europe Study Urges EU Industrial Policy To Look Beyond Raw Materials
- By TT News
- September 28, 2026
A new Oxford Economics study commissioned by Tyres Europe underscores the tyre sector's vital economic and social contribution, arriving as Brussels shapes its Industrial Accelerator Act to reinforce European industrial competitiveness. The report, titled ‘The Critical Importance of the EU Tyre Industry’, makes the case that EU industrial policy ought to encompass the finished products sustaining Europe's economy and essential services, rather than focusing solely on raw materials and technologies.
Through the lens of tyres, the research maps the relationships between European manufacturing capacity, reliance on external sources and the smooth operation of mobility, freight and public services. It concludes that EU-produced tyres potentially enabled freight, agriculture and passenger transport, directly yielding EUR 1.5 trillion in GDP – 9 percent of the EU's total – and providing work for 30.5 million people, 13 percent of EU employment.
The study further reveals exposure on both sides of the tyre value chain. Imported intermediate inputs constitute 11.9 percent of EU tyre production value, exceeding the EU economy average of 7 percent, while natural rubber supplies depend wholly on imports. In 2024, imported tyres made up 40 percent of newly fitted tyres across the EU, a proportion that continues to climb.
Adam McCarthy, Secretary General, Tyres Europe, said, “Economic resilience depends not only on access to materials but also on retaining the capacity to transform them into safe, advanced products in Europe. The Industrial Accelerator Act is an opportunity to recognise strategically-important finished products and support competitive manufacturing in Europe. A strong EU tyre manufacturing base reduces reliance on external suppliers and helps build a more resilient, competitive automotive value chain.”
Pete Collings, Managing Director, Oxford Economics, said, “Europe’s tyre industry is far more than a manufacturing sector: it is a critical enabler of mobility, trade and wider economic activity. Our analysis shows that EU-produced tyres support hundreds of billions of euros in GDP and millions of jobs across key customer sectors, while the industry itself depends on complex global supply chains. The findings underline the economic value of maintaining a strong European tyre manufacturing base.”
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