Pirelli doubles H1 profit, expects improvement for full year

Milan, Italy -- Pirelli & C SpA has announced its results for the first six months of 2005. The company said the group's net profit was up to Euro 210 million (H1/2004: Euro 104 million), while group revenues rose 10 percent to Euro 2281 million (2016 million).

The company said it recorded an extraordinary gain of Euro 1200 million following the sale of Pirelli Cables and Systems.

Within the tyre division, revenues rose 8.3 percent, to Euro 1796 million, while operating profit was up 21 percent to Euro 187 million. The company said return on sales stands at 10.4 percent in the first half. Pirelli's results statement said, "the first half was characterised by the excellent performance of Pirelli Tyres, which recorded a further increase in profitability compared with the preceding quarters."

Over the six-month period the tyre unit has increased its permanent employee count by around 500, and boosted temporary workers by about 1000. In the statement, the company said, "Employee number at 30 June 2005 stood at 22,824, including 3,406 temporary workers (at 31 December 2004 employees were 21,513, of which 2,576 temporary workers)."

Pirelli said it saw volumes grow and an improved product mix added to the strong performance, despite relatively poor demand. The company said it managed to increase its profitability despite significantincreases in raw material costs. "The Consumer business (Car and Motorcycle) saw positive volumes and sales performances due to higher sales especially in North America, in Premium products like PZero Rosso, PZero Nero, Scorpion Zero in all areas," said the statement.