Italian tiremaker Pirelli & C. SpA has lowered its fiscal 2018 guidance for organic sales growth, citing the impact of its decision to reduce its exposure to the lower-priced "standard" tire segment on its overall sales volume.
Pirelli, which is focusing more on the higher-priced "high value" tire segment, said May 14 that it expects full-year organic revenue growth of at least 9%. Its prior forecast called for growth of 10%. The company confirmed its full-year profit forecast for adjusted EBIT before startup costs of over €1 billion, from €926.6 million the previous year.
For the first quarter ended March 31, the company reported EPS related to continuing operations of 9 euro cents compared to 5 cents a year ago.
The company said its first-quarter adjusted net profit from continuing operations rose to €113.3 million from €75.7 million as it improved cash flow and decreased financial expenses. Net sales fell to €1.31 billion from €1.34 billion in the prior-year period.
The tire company also appointed Giovanni Lo Storto to its board.