Sales at the French firm dipped 0.9% last year to €28.3 billion (US$30.5 billion) in what it described as adverse market conditions with the replacement tyre market hit by massive destocking.

Sales by volume dropped by 4.7% but Michelin said this reflected its strategy of prioritising markets and business segments, with the company also able to boost prices.

Sales of premium and big tyres, in particular for SUVs, helped improve the company’s performance, as did a drop in costs for raw materials from peaks hit in 2022.

Operational profits in the tyre segment hit a record €3.6 billion, but net profits dipped 1.3% to €1.98 billion.

The company also returned to generating free cash flow, €3.0 billion in 2023, after having burned through cash in 2022.

For 2024, the company said it expects global markets to remain stable and that it will be able to generate an operating profit of €3.5 billion.

It announced a share buyback programme worth up to €1.0 billion over 2024 to 2026.