Despite weaker sales in the first quarter, Michelin maintains its annual forecast. The French tire manufacturer reported a decline in sales to 6.64 billion euros, compared to 6.96 billion euros in the same period last year. This decline was within analysts' expectations, who had forecasted sales of 6.68 billion euros.

The decline in sales is partly due to a 4.1% drop in sales volume, which was particularly affected by weak demand in the truck and specialty tire segments. This represents an improvement compared to the previous year, when the company ceased its operations in Russia, but is worse than the expected contraction of 3.4%.

Despite the Negative Impact of the Exchange Rate Affecting Revenues, Michelin Could Offset Some of the Losses Through Optimized Pricing and Product Mix.

The company reaffirmed its full-year target with an operating result of the segments of over 3.5 billion euros at constant exchange rates and a free cash flow of more than 1.5 billion euros, excluding mergers and acquisitions. This forecast reflects the management's confidence in the strategic direction and resilience of the business model despite the challenges in the global economic situation.