MILAN, March 6 Reuters Italy39;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 tyremaker guided for revenues of between 6.8 and 7 billion euros next year, versus 6.65 billion euros 7.23 billion in 2023.

Milanlisted 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 fullyear 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 CarlevaroKeith Weir

Source Reuters