Italian tyre manufacturer Pirelli Spa has reaffirmed its financial targets for 2011 despite an expected downturn in global car markets.
In an interview with Market Watch, Pirelli chairman Marco Tronchetti Provera claimed that the company will be largely unaffected by a possible reduction in new car sales as drivers will always have to replace their tyres.
"Original equipment represents 25 per cent of our sales while replacement accounts for the other 75 per cent," he told the news provider.
Mr Tronchetti Provera added that "the demand for tyres hasn't reduced recently" and claimed the firm was on track to meet its goals for this year.
The group closed the first half of 2011 with sales of 2.78 billion euros (£2.44 billion), an increase of 17.7 per cent compared with the same period of 2010. It has forecast total revenue for the year would reach 5.85 billion euros (£5.14 billion).
Earlier this week, Pirelli announced that it was going to invest 160 million euros (£140.7 million) into expanding operations at its Slatina factory in Romania.
Posted by Danielle Barge