Pirelli Tyre sales, earnings up in 1st half

Milan, Italy - Pirelli Tyre SpA reported a six-percent improvement in operating income in the first half of 2007 on 6.6 percent higher sales.

For the period ended 30 June, Pirelli Tyre reported sales of $2960 million (€2159 million) and operating earnings of $283.3 million, as both the consumer and industrial tyre businesses contributed growth. Revenue growth was a combination of higher volume and improved product mix, Pirelli said, despite the negative effect of currency exchange rate changes.

Pirelli did not disclose its regional sales performances.

On a consolidated basis, parent company Pirelli & C SpA reported a slight drop in operating income to $294.3 million on 30.3-percent higher sales of $4380 million.

Besides Pirelli Tyre, Pirelli's other major operating group is Pirelli RE, a management company that manages funds and companies that own real estate and non-performing loans. Pirelli RE contributed $1300 million in sales and pre-tax earnings of $172 million.

From Tire Business (A Crain publication)