MILAN, March 6 (Reuters) - Italy's Pirelli said on Wednesday it saw revenue growth hardly exceeding 5% by next year, in a volatile environment of growing geopolitical tensions, slower growth and weaker demand due to inflation and high interest rates.
In an update of its business plan to 2025, the tyre-maker guided for revenues of between 6.8 and 7 billion euros next year, versus 6.65 billion euros ($7.23 billion) in 2023.
Milan-listed shares in the company erased early gains following the release of its 2023 results and of the business plan update. By 1230 GMT they were down 1.2%.
Pirelli also forecast its margin on adjusted operating profit (EBIT) to rise to around 16% in 2025, from 15.1% last year.
The company closed last year with a 2.5% operating profit rise, helped by pricing power and product mix, which offset effects of higher inflation and raw material costs.
Its full-year 2023 adjusted EBIT amounted to 1.002 billion euros, broadly matching a 991 million euro analyst consensus provided by the company.
($1 = 0.9197 euros)
Reporting by Giulio Piovaccari, editing by Cristina Carlevaro/Keith Weir
Source: Reuters