* 2010 sales seen above 4.9 billion euros
* 2010 EBIT margin seen above 7.5 percent
* Shares up 1.5 percent, outperform sector
(Adds details, background, shares)
MILAN, Oct 14 (Reuters) - Italian tyre company Pirelli & C raised its full-year forecasts for margin and sales after nine-month data showed a strong performance, driven by higher sales and cost cuts.
Pirelli said on Thursday it raised its 2010 earnings before interest and tax (EBIT) margin target to more than 7.5 percent, from a previous forecast for around 7 percent, and the sales target to more than 4.9 billion euros ($6.9 billion).
"For Pirelli Tyre, growth in sales volume and positive support from the price/mix, tied to internal efficiencies, have more than compensated for the impact in higher raw material costs...," it said.
Pirelli's tyre activities make up nearly 95 percent of group's sales which rose 19 percent to 3.7 billion euros in the first nine months.
Its quoted unit Pirelli & C Real Estate SpA was set to be spun off this month, leaving a pure tyre play it hopes will be more attractive to investors.
At 1229 GMT, Pirelli shares were up 1.5 percent 6.37 euros, a more than two-year high, and outperforming the STOXX Europe auto index which was flat. (Writing by Nigel Tutt) ($1 = 0.7110 euro)