Pirelli Lifts Revenue Outlook for 2024 After Cushioning Middle East Effects
Pirelli's Financial Performance and Strategic Actions in 2024
Revenue Forecast and Mitigation Strategies
MILAN, May 7 (Reuters) - Italian premium tyremaker Pirelli on Thursday slightly raised its revenues forecast for this year, saying it managed to contain the impact of the ongoing Middle East crisis through a series of "mitigation actions".
Key Mitigation Actions
These include price increases from the second quarter, further cost containment, a revision of logistics flows and a temporary increase of back-up inventories of critical raw materials to guarantee continuity of production, Pirelli said.
Updated Revenue Guidance
• Pirelli guided for full year revenues of around 6.75 to 6.95 billion euros ($7.9-8.2 billion), versus a previous forecast of 6.7-6.9 billion euros.
2026 Forecasts and Regional Exposure
• It confirmed other 2026 forecasts, including an adjusted EBIT margin of around 16%.
• Pirelli said it has "limited" exposure to Middle East, accounting for around 1% of its revenues.
First Quarter Earnings and Expansion Plans
• In the first quarter, adjusted earnings before interest and taxes (EBIT) amounted to 277 million euros, little changed from 280 million euros a year earlier, and above a company provided analyst consensus of 274 million euros.
• Pirelli on Wednesday said it would start producing Cyber Tyres in the United States, after Italy curbed the influence of the premium tyre maker's Chinese investor Sinochem in a bid to help its expansion across the Atlantic.
Additional Information
($1 = 0.8500 euros)
(Reporting by Giulio Piovaccari, editing by Alvise Armellini)
