ERJ staff report (TB)
Milan, Italy -- Pirelli & C. SpA reported double-digit growth in sales and earnings last year, including 30-plus-percent growth in North America, company executives said yesterday.
Pirelli's revenues rose 19.2 percent last year to euro 4,848.4 million while pre-tax operating income jumped 56.8 percent to euro 407.8 million, thereby improving the earnings ratio two percentage points to 8.4 percent.
The net result was euro 4.2 million vs. a net loss last year of about euro 22.6 million.
Pirelli attributed its revenue growth to higher unit volumes and improved price/mix effectiveness, especially toward premium products, including winter tyres. Operating income benefited from pricing actions that compensated for increased production costs, in particular raw material costs as well as a progressive and strategic shift toward premium products, increased volumes and enhanced manufacturing efficiencies.
Pirelli Tyre S.p.A.'s results essentially mirrored those of its parent, especially since the unit now accounts for more than 98 percent of Pirelli & C.'s business following the divestiture last year of most of the firm's non-tyre-related assets.
Pirelli Tyre reported an operating profit of euro 453.1 million on sales of euro 453.1 million. Pirelli registered growth of 16.7 percent in its consumer business (car, light truck and motorcycle tyres) and 21.7 percent in its commercial sector (truck tyres and steel cord).
Capital spending nearly doubled to euro 433.1 million to support expansion and modernisation projects in Italy, China, Rumania and Latin America. Pirelli Tyre President Francesco Gori said the firm's new plant in Mexico should produce its first tyres in the second quarter of 2012.
The board of directors has raised the firm's sales goal for fiscal 2011 nearly 8 percent to more than euro 5550 million.
From Tire Business (A Crain publication)
Press release from Pirelli