Pirelli to raise European prices 6% in September
Following the release of its second quarter financial results yesterday, Pirelli announced that it would implement a further round of price increases at the end of the summer. The latest six per cent prices hike will be effective in all European markets across the company’s car, SUV and van tyre product ranges from 1 September. The company reported that the it has had to raise prices as a consequence of the rising costs of “key raw materials, in particular natural and synthetic rubber, and oil.”
Financial analysts at Morgan Stanley described the announcement, which was shared with the banks after the financial results were presented in a conference call, as “a surprise.” Nevertheless they responded positively to the news: “Pirelli is our top pick among suppliers. We believe Pirelli can continue to outperform peers after second quarter results, thanks to consensus upgrades and a confidently positive message from management on second half growth and profitability.”
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