MILAN — Luxury sports car maker Ferrari said on Wednesday it was improving its forecasts for full-year results, including for core earnings, after beating expectations in the third quarter, supported by a double-digit increase in shipments.

The company however struck a more cautious tone on the margin on those core earnings, now seen at around 35% for this year, versus a previous guidance of over 35%.

It said industrial costs and research and development expenses increased in the past quarter mainly due to higher depreciation and amortization and cost inflation.

Ferrari said its adjusted earnings before interest, tax, depreciation and amortization (EBITDA) would grow this year to over 1.73 billion euros ($1.71 billion), versus an already improved forecast of 1.70-1.73 billion euros it provided three months ago.

After briefly turning positive following the release of the results, Milan listed shares in Ferrari fell as much as 2.4%. By 1235 GMT they were down 1.4%.

In the third quarter, adjusted EBITDA rose 17% to 435 million euros, topping analyst expectations of 418 million euros, according to a Reuters poll.

($1 = 1.0107 euros)

(Reporting by Giulio Piovaccari; Editing by Keith Weir)

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