MILAN, Feb 25 (Reuters) - Tyremaker Pirelli said on Wednesday it saw its revenue to be flat to slightly increasing this year, as key investors remain locked in a governance dispute that could limit
Pirelli Forecasts Stable to Slightly Increased Revenue for 2023
MILAN, Feb 25 (Reuters) - Tyremaker Pirelli said on Wednesday it expects revenue to be flat to slightly higher this year, and the company proposed a dividend hike, as key investors remain locked in a governance dispute that could limit the group's U.S. expansion.
The Italian company gave guidance for revenue to be 6.7 billion to 6.9 billion euros ($7.91 billion to $8.14 billion) this year, versus 6.78 billion euros in 2025, which was in line with Pirelli's forecasts.
Financial Projections and Earnings
It also gave guidance that margin on adjusted earnings before interest and tax (EBIT) would be around 16%, "slightly improving" over last year.
Pirelli proposed an overall dividend of 0.34 euros per share, including an extraordinary 0.10 euro component due to "positive results and decreased financial leverage."
The company has been at the centre of a protracted governance row between its two largest shareholders, Chinese state-owned Sinochem with 34% and Camfin, the investment vehicle of Executive Vice President Marco Tronchetti Provera, with 25.3%.
Governance Challenges and Shareholder Tensions
Tensions have intensified ahead of new U.S. rules curbing the use of Chinese technologies in the automotive sector. Camfin - and Pirelli itself - have argued that Sinochem's ownership position complicated Pirelli's expansion plans in the United States, a key market for its premium tyre business.
Pirelli's board this year rejected a Sinochem proposal aimed at solving governance issues. It ensvisaged spinning off activities that would fall under the new U.S. regulation. Sinochem said the proposal was "well founded" and "in line with best international practice." The dispute has influenced board appointments, strategy and oversight at the Italian tyremaker in recent years and is now expected to trigger further intervention by the Italian government on Pirelli's governance rules.
($1 = 0.8474 euros)
Currency Exchange Rate Information
(Reporting by Giulio Piovaccari; editing by Gianluca Semeraro and Cynthia Osterman)
