MILAN, Nov 5 (Reuters) - Italian property company Pirelli & C Real Estate SpA ditched its operating profit target for 2008 on Wednesday as the financial crisis hit its market but said it should manage to break even.
Pirelli RE, controlled by holding company Pirelli & C, turned in 9-month operating profit of 33.1 million euros ($42.51 million) before restructuring costs, compared to operating profit of 141.2 million euros a year ago.
Property sales slid 40 percent to 714.5 million euros.
It said it broke even before restructuring costs at the net level, compared with a profit of 95.8 million euros a year ago.
It had a net loss for the nine months of 12.9 million euros including restructuring costs.
"Because of the financial crisis, which has triggered a sharp slowdown in the market, the company does not think it possible to confirm its (operating profit) target for 2008," it said in a statement.
"It expects, however, to break even including extraordinary costs and income."
Pirelli RE said in August it thought its full-year operating profit (earnings before interest and tax) before restructuring costs would be in line with last year.
Chief Executive Carlo Puri Negri told analysts on a conference call Pirelli RE would "probably manage break even" in 2009 as well. He ruled out a dividend on this year's figures.
Pirelli RE said it had agreed to sell its stake in Pirelli RE Integrated Facility Management BV, a joint venture with bank Intesa Sanpaolo, to Manutencoop Facility Management and would announce financial details later.
It expects to make another divestment before the end of the year, Puri Negri told analysts. Pirelli & C publishes its results on Friday.
(Reporting by Jo Winterbottom; additional reporting by Stefano Rebaudo; editing by Elaine Hardcastle)