The sole supplier of Formula 1 tires said its adjusted earnings before interest and tax (EBIT) rose 21% in the April-June period to 253 million euros ($258 million), exceeding the consensus of analysts provided by the company which was 238 million euros.
Higher raw material costs of 116 million euros weighed on the result along with an 88 million euro increase in production costs, the company said.
Managing Director Marco Tronchetti Provera told analysts that Pirelli’s business model, which focuses on high value-added tyres, and its ability to respond quickly to critical issues “makes us confident in our ability to face an increasingly difficult scenario.” hard”.
He added that looking ahead, there were no signs of weakening demand so far.
The tire maker forecasts sales of between 6.2 and 6.3 billion euros in 2022, compared to a previous forecast of 5.9 to 6.0 billion euros.
It also revised its full-year net cash flow forecast upwards, while reiterating an adjusted EBIT margin forecast of around 15% for the full year.
RUSSIA
Pirelli said its sales in Russia in the first half were around 3% of its global sales, which remains broadly unchanged from 2021.
Earlier this year, the company announced that it was relocating its export-oriented Russian production to other countries, while leaving its two factories in the country to serve the local market only.
Sanctions against Russia, which prohibit the export of certain raw materials to the country and goods produced in Russia to the European Union, came into force on July 10, she said.
Pirelli estimates the costs associated with the announced relocation of its export-oriented Russian production to be between 30 and 35 million euros, Tronchetti said, adding that he was confident they would be fully absorbed by now. at the end of the year thanks to better commercial performance in other areas.
($1 = 0.9791 euros)