Global sell-in markets edged up slightly, led by Replacement demand.
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PC/LT tire demand grew by 2% thanks to robust Replacement demand in North America and China. After a strong start to the year, OE demand was flat over the full quarter. Stock levels in distribution are close to normative level.
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Truck tire markets outside China were up 2%, with Replacement demand increasing by 4% driven by sustained economic activity in North and South America, and increasing imports of Asian tires into North America ahead of expected anti-dumping duties. OE demand fell by 7% on highly unfavorable comparatives in Europe and North America.
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Specialty tire markets were mixed over the period. Construction, Agricultural OE and Two-wheel tire markets have declined, Mining tire demand improved but was impacted by inventory drawdowns, and Aircraft tire markets trended upwards.
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Non-tire markets were stable overall, reflecting the hesitant economic environment.
Consolidated sales down 4.6% for the period, of which 1.9% from currency movements. Performance in the most value-accretive segments translates into a stronger mix.
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A 4.1% decline in volumes, stemming primarily from Truck and Specialty tires due to soft overall demand and a stricter selection of where-to-play market segments. Sales of 18-inch and larger passenger car tires expanded at a sustained pace.
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A positive 0.7% price-mix effect, combining the expected negative price impact from indexation clauses in the contractual businesses, and a powerful mix effect reflecting the Group’s performance in prioritized market segments.
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Non-tire sales grew by 0.7% with the consolidation of FCG, acquired in 2023, but were unchanged like-for-like due to high prior-year comparatives.
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A strong negative 1.9% forex headwind, as most currencies declined against the euro.
Full-year guidance unchanged.
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The Group is maintaining its projected sell-in markets scenario, with sales volumes still expected to end the year within the [-2%; 0%] range.
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2024 guidance is unchanged, with segment operating income above €3.5 billion at constant exchange rates and reported free cash flow excluding M&A of more than €1.5 billion