Pirelli report sales increase and earnings slip in Q1

ERJ staff report (RD)

Milan - Pirelli Tyre SpA has a slight decrease in earnings for the quarter ended 31 March 2008. Improved pricing and product mix was offset by rising manufacturing costs and an unfavourable exchange rate, the company said.

Revenues of Pirelli Tyre amounted to Euro 1076.9 million, with growth on a like-for-like basis of 3.2 percent compared with the first quarter of 2007.

EBITDA amounted to Euro 148.5 million (13.8 percent of sales), substantially in line with the Euro 150.9 million of the first quarter of 2007. EBIT amounted to Euro 100.3 million, slightly down from Euro 103.7 million in the first quarter of 2007.

Both the consumer (car, light truck and motorcycle tyres) and industrial (commercial vehicle tyres and steel cord) business units reported higher sales during the period, but the consumer unit's operating income fell 9.4 percent while the industrial sector's profit improved by 14.9 percent.

In consumer tyres, Latin America posted a double-digit sales increase, while in Europe and North America the company struggled with falling replacement market demand.

From Press release