A preliminary report suggests that Pirelli SpA’s fourth quarter financial figures have beaten consensus estimates in terms of earnings before interest and tax by 15%, leading banks to predict an upgrade to the company’s stock value.

Net debt is also lower than expected according to the report, while analysts called the Italian manufacturers’ message that its pricing will offset higher raw materials costs "very confident."

Preliminary data from Pirelli showed 2010 sales up 19.2% year-over-year to 4.85 billion euros, and operating profit after restructuring costs rose 64% to 407.8 million euros.

The tiremaker claims it is covering 80% of raw material cost increases through pricing adjustments. For 2011, Pirelli sees raw material costs pulling down 580 million euros on its earnings, assuming NR pricing at $4,900/ton and with crude oil at $110 per barrel.