Pirelli turns more cautious on revenues, but pricing power stays strong
MILAN (Reuters) -Tyremaker Pirelli nudged down its estimates for full year sales on Thursday to reflect forecasts for a weaker market, despite improving results in the second quarter which were supported by strong pricing power.
The Italian company guided for full year revenues in the 6.5-6.7 billion euro ($7.15-$7.37 billion) range, just down from a previous estimate of around 6.6-6.8 billion euros "in consideration of greater caution linked to the external context".
"The macro-economic framework for 2023 remains volatile, with a mild economic growth due to uncertainty regarding Europe, penalized by monetary tightening and China, which is experiencing a slower than expected recovery," Pirelli said in a statement.
It added that, also considering the market's weaker-than-expected performance in the second quarter, it now saw the global car tyre market declining by around 2% this year, versus a previous estimate for a flat market.
Pirelli however slightly lifted its fully year forecast for it operating margins thanks to an improved pricing mix.
It now projects the margin on its full-year adjusted earnings before interest and tax (EBIT) in the 14.5-15.0% range, versus a previous forecast of around 14.0-14.5%.
($1 = 0.9093 euros)
(Reporting by Giulio PiovaccariEditing by Keith Weir)
