Pireli Tyre has projected that its 2019 revenue would grow to 5.3 billion euros, 2,5 per cent higher than a previous guidance of between 1.5% and 2.5%.
Under the arrangement, the company is expecting a full-year cash flow of between 330 and 350 million euros, against a previous forecast.
Pirelli said it would present its 2020 industrial plan, earlier scheduled for Dec. 11 this year in the first quarter of next year .
Chief Executive Marco Tronchetti Porvera explained on Wednesday that the move followed an “effective” deterioration of market conditions.
“In this context, to protect our profitability we have to act deeper to reduce the cost of our products,” he said.
Meanwhile, the company has cut its guidance on operating profit margin and cash flow, and said it would delay the presentation of its new business plan as it needed to work out stronger measures in a worsening market scenario.
Adding to a string of auto parts suppliers hit by prolonged industry weakness, Pirelli said it forecast a full-year margin on its adjusted earnings before interest and taxes (EBIT) between 17% and 17.5% versus an already lowered previous target of 18-19%.
Pirelli, which makes tyres for Formula One racing teams and premium automakers such as BMW and Audi, said in a statement it cut its guidance after facing greater fixed costs as it lowered production to reduce inventories.
In nine-month results, Pirelli said adjusted EBIT slightly fell to 685 million euros, in line with a market consensus provided by the company. That equates to a margin of 17.0%.
