ERJ staff report (TB)
Milan, Italy -- Pirelli & C. S.p.A.'s board of directors has raised the firm's sales goal for fiscal 2011 nearly 8 percent to more than euro 5550 million after reporting 19.2-percent sales growth last year.
The board also cautioned customers that price increases this year â€œwill be sharper than initially planned and aimed at recovering the cost differenceâ€ brought on by higher-than-foreseen increases in raw materials costs in recent weeks.
Pirelli said it expects to achieve 8-percent revenue growth via unit volume growth of 6 percent and an improved price/mix component of about 12 percent. Both components are measurably higher than those laid out last November, the firm said.
The company expects to achieve its previously released pre-tax operating income goals of 8.5 to 9.5 percent of sales based on the positive effects of its cost-efficiency plan begun last year.
Capital investments are seen rising 23.5 percent to more than euro 500 million.
From Tire Business (A Crain publication)
Press release from Pirelli