SOAVE, Italy (AP) — Luxury sports carmaker Ferrari has slashed its full-year earnings guidance due to the COVID-19 pandemic.

But it acknowledged Monday that the new outlook assumes a sharp recovery in the second half of the year.

CEO Louis Camilleri said the lowered guidance assumes that 75% to 100% of the lost earnings will be booked during the second quarter.

It says it has not received significant numbers of order cancelations.

The company said it does not model the possible risks of a severe second wave of infections. Ferrari issued its first-quarter earnings as it resumed production after a seven-week halt.