PARIS (Reuters) -Shares in Michelin fell as much as 11% on Tuesday, to their lowest in almost three years, after the tire maker cut its forecast for full-year income more than expected due to weak business conditions in North America.

The company said late on Monday it expected 2025 segment operating income of 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, after third-quarter sales volumes fell almost 10% in its key region, North America.

Michelin produces its tires for the North American market locally, avoiding a direct impact from U.S. tariffs. However, it is seeing a knock-on impact from weaker truck sales after customers became more cautious in the volatile environment.

Michelin's shares tumbled 11% at the opening before reducing losses and were down 8.7% by 0839 GMT, the lowest since July 2023 and on track for their worst day since March 2020.

Last week, German carmaker BMW cut its annual earnings forecast due to U.S. import tariffs, while Mercedes reported a drop in third-quarter sales.

Michelin attributed its lower outlook to "plummeting demand" from truck and agriculture segments in North America in the third quarter and a weak sell-out market in truck replacement tires that reflected the soft economy. The cut was "far bigger than expected", said analysts at Deutsche Bank. 

It also raised concerns about the 2026 target, which Jefferies said was "very clearly likely to be cut" in the third or fourth quarter. The French company reports third-quarter sales on October 22.

Michelin said in May 2024 it was targeting an operating income of 4.2 billion euros for 2026.