Oct 13 (Reuters) - French tire maker Michelin

on Monday cut its full-year outlook citing worse-than-expected

business conditions in the North American market that have

eroded sales volumes and margins.

The company now expects 2025 segment operating income at

constant exchange rates between 2.6 billion euros and 3.0

billion euros ($3.0 billion-$3.5 billion), down from an earlier

forecast of income above 3.4 billion euros.

The company said that while it posted volume growth in other

regions, in North America third-quarter sales volumes fell

almost 10%, with "plummeting demand" from truck and agriculture

segments, a weak sell-out market in truck replacement tires that

reflected the soft economy, and headwinds in sales to consumers.

"On the margin front, group competitiveness has been impacted by

tariffs," it said in a statement.

North America is Michelin's top market, and while it produces

tires locally, avoiding a direct impact from U.S. tariffs, the

company is seeing a knock-on impact from weaker car sales after

automakers were forced to hike prices and customers became more

cautious in the volatile environment.

The company also said that it had lowered its expected free

cash flow before M&A to between 1.5 billion euros and 1.8

billion euros, down from more than 1.7 billion euros, due to the

weaker dollar.

Michelin's warnings come as many carmakers face sluggish demand

in Europe, fierce competition from Chinese rivals and the impact

of tariffs on exports to the U.S.

Analysts had said last week that weaker-than-expected

third-quarter sales volumes discussed in a pre-close call could

affect the tiremaker's full-year performance.

Michelin reports third-quarter sales on October 22.

($1 = 0.8641 euros)