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)