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Pirelli considers US investment to curb tariffs impact
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Pirelli considers US investment to curb tariffs impact
Feb 26, 2025 11:09 AM

MILAN, Feb 26 (Reuters) - Tyremaker Pirelli

will seek to limit the impact of possible tariffs, including by

expanding U.S. output, it said on Wednesday, while forecasting

an adjusted earnings before interest and tax (EBIT) margin of

around 16% for 2025, higher than last year.

The Italian tyremaker makes around 25% of its revenues on

the North American market.

"We are considering significant investments in the U.S. to

increase production capacity," Executive Vice-chairman Marco

Tronchetti Provera said in post-earnings call with analysts.

Pirelli is vulnerable to possible U.S. import tariffs, as it

mostly serves its North American market through tyre output from

its plants in Mexico, South America and Europe, even though it

has a plant in the U.S. state of Georgia.

Pirelli said its mitigation plan in the event of U.S.

tariffs also included a review of commercial policy based on

inflation expectations, CEO Andrea Casaluci told the same

analysts call.

Pirelli on Wednesday announced adjusted EBIT for the final

quarter of 2024 of 244.6 million euros ($257.10 million), up

11.5% year-on-year, and exceeding a 228 million euro analyst

consensus provided by the company.

It also posted a 15.7% adjusted EBIT margin for the whole of

2024, compared with a 15.5% target guided last August.

($1 = 0.9514 euros)

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