Pirelli affirms 2013 outlook after lower Q1 profit

MILAN Tue May 7, 2013 11:58am EDT

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MILAN May 7 (Reuters) - Pirelli, the world's fifth-largest tyremaker, stuck with its full-year sales and profit targets as growth in the higher-margin premium segment underpin revenue and margins this year.

It said its net profit fell to 72.1 million euros ($94.34 million) from 123.6 million euros during the first quarter of last year. A consensus of 14 analyst forecasts posted on the company's website called for an attributable net profit of 74.2 million euros.

The Italian company, whose tyres equip motorcycles, cars, and Formula 1 racers, confirmed sales would grow in 2013 by between 3-4 percent to 6.3-6.4 billion euros as tyre sales for growing premium brands like Mercedes, Audi and BMW grow between 13-14 percent.

Consolidated earnings before interest and taxes for the year were confirmed in a range of between 810 million and 850 million euros.

In the quarter, revenues stood at 1.53 billion euros, down slightly from the 1.56 billion euros posted last year, while net debt rose to 1.68 billion euros from 1.2 billion euros at the end of December. (Reporting By Jennifer Clark, editing by Silvia Aloisi)

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