Further expansion in Asia plan by Piaggio

Piaggio SpA from Italy is a well known auto maker company all over the world and for its Vespa scooters that has reportedly stated that it was targeting further expansion in Asia to offset weak two-wheeler markets in Europe. However, it has left its core earnings margin target unchanged.

In a strategy for 2011-2014, Piaggio mentioned that it would continue to expand its presence in Asia, with new production, models and sales activities, including entry into the Indian scooter market. The company stated "The plan foresees a strong growth in productivity in order to generate value for customers, workers and shareholders, working on its increased international presence."

Piaggio set 2014 targets of around 2 billion euros in sales, up from just over 1.5 billion euros seen by analysts this year, and an earnings before interest, tax and depreciation (EBITDA) margin of 15 percent. The EBITDA major target, which is unchanged from the previous 2013 target set a year ago, is likely to disappoint the market, which had been looking for up to 17 percent. It was mentioned that Piaggio has said it wants Asian sales to account for 50 percent of total sales in 2014, up from a third in 2010, with Europe representing the other half.