MILAN, Nov 11 (Reuters) - Italian tyre-maker Pirelli on Wednesday lowered its margin forecast for this year, citing continuing uncertainty in light of the second wave of the COVID-19 pandemic.
The manufacturer of tyres for Formula One and high-end carmakers such as BMW and Audi said the 2020 market outlook had improved in the North America and Asia-Pacific regions.
“But the outlook (is) cautious for Europe because of recent anti-COVID measures following the resurgence of the pandemic,” it said in a statement.
The group guided for a 2020 full-year margin on its adjusted earnings before interest and tax (EBIT) of 11.5-12%, against a twice-trimmed previous forecast of 12-13%, to account for the impact of exchange rates, raw materials and other costs.
In the third quarter, however, operating profit was above expectations.
Pirelli said its adjusted EBIT stood at 231.7 million euros ($272.5 million) in the July-September period, down from 244.5 million euros a year earlier, beating a company-compiled analyst consensus of 206 million euros.
The company’s cost competitiveness plan and actions to counter the COVID-19 context are in line with forecasts announced in May, Pirelli said.
Pirelli’s adjusted EBIT margin fell to 16.7% in the third quarter, from 17.7% in the same period last year. ($1 = 0.8502 euros) (Reporting by Giulio Piovaccari Editing by David Goodman)