MILAN, Italy — Pirelli & C. S.p.A. has revised downward its financial outlook for 2019, citing continuing weakness in OE markets and competitive pressures on prices in the standard tires segment.
In its quarterly financial statement for the period ended June 30, the Italian tire producer said it expected the market to fall by 1.2%, versus a previous estimate of flat growth.
The company said it now expects the standard products segment to decline 2%, while new premium tires (rim diameters of 18 inches and above) is expected to grow 6%, below the previous forecast of 7%.
Revenues are on track to grow 1.5% to 2.5% year-on-year, against a previous growth indication of between 3% and 4%, the company added.
Total volumes are expected to decline by 2% to 2.5% as opposed to an earlier estimate of 1%, due to "more cautious expectations" regarding OE demand and the standard segment in South America.
Pirelli anticipates high-value volumes to grow by between 7.5% and 8%, below the previously announced 9%. Standard volumes are expected to fall by between 12% and 11.5%, compared to a previous estimate of 11%.