UPDATE 1-Currency swings force Pirelli to cut 2014 sales target

jueves 27 de marzo de 2014 17:02 GYT

* Sees 2014 revenues at 6.2 bln euros, down from fcast of 6.6 bln

* Confirms 2014 EBIT target, to raise prices in Latin America

* Cautiously optimistic on gradual recovery in Europe

* CEO says Pirelli outperforms market in Russia (Adds details, context, comments)

By Agnieszka Flak

MILAN, March 27 (Reuters) - Pirelli, the world's fifth-largest tyremaker, has cut its sales target for this year, citing worse-than-expected currency effects, after delivering 2013 results in line with its own previously-lowered forecasts.

The Italian company, whose tyres equip motorcycles, cars and Formula 1 racers, said it expects to report sales of 6.2 billion euros ($8.52 billion) this year, up nearly 1 percent on 2013 but down from a previous target of 6.6 billion euros. The adjustment was largely expected.

Pirelli said it expected to be hit hard by unfavourable exchange rates in emerging markets, especially in Latin America, its single largest region. The group expects the total impact on the year's operating result from currency headwinds of 110 million euros this year, more than double its previous estimate.

However, with higher volumes, lower raw material costs and a better price mix, 2014 earnings before interest and taxes were still expected at around 850 million euros. Pirelli will raise prices in Latin America to counter some of the currency effects.   Continuación...