Pirelli sees FY operating profit at top end of forecast despite Q3 drop
Reuters
Published Nov 09, 2023 17:39
MILAN (Reuters) - Italian tyremaker Pirelli said on Thursday its operating profit would come in at the higher end of its forecast range this year despite slightly falling in the third quarter.
The company said it now sees its margin on adjusted earnings before interest and tax (EBIT) at around 15%, versus a previous forecast of around 14.5-15.0%, thanks to improved pricing power.
Pirelli, the sole provider of Formula 1 tyres, also nudged up its cash generation forecast range for this year.
In the third quarter, adjusted EBIT fell 2.5% to 265 million euros ($284 million), slightly topping a company provided consensus of 259 million euros.
While stronger pricing power, efficiencies and lower raw material prices had a positive impact, other factors, including lower volumes, exchange rates and inflation on other costs of production, weighed on the quarterly result, Pirelli said.
The margin on adjusted EBIT however improved in the third quarter to 15.4% from 14.8% a year earlier.
Pirelli also said on Thursday it had decided to postpone to March 2024 an update to its current business plan, initially scheduled for the end of this year, due to the "uncertainties linked to the international environment".
($1 = 0.9338 euros)
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Written By: Reuters
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