Pirelli seeks 4.5-percent annual growth for tire sector

MILAN, Italy (May 15)—Pirelli S.p.A. is targeting 4.5-percent annual growth by its tire sector the next several years, according to a three-year business plan presented to shareholders at the company's annual meeting. Pirelli will put even more emphasis on the high-performance end of the market, which also will include run-flat tires and new motorcycle tire designs. For the first quarter of 2002, Pirelli's tire sector posted a 4-percent increase in sales to $665 million, based on a 2.6-percent rise in unit sales and a 5-percent gain in prices/product mix. These gains were offset by a negative exchange rate, Pirelli said. Operating earnings were down slightly to $47.4 million.