Pirelli profit jumps in first half, but volumes fall

ERJ staff report (DS)

Milan - Pirelli & C. reported profit (EBIT) of euro 401 million (up 38 percent) on sales of euro 3022 million (up 8.3 percent) for the six months to 30 June 2012

In the tyre activity, the company reported profits of euro 413 million (up 32 percent) on sales of euro 3000 million (up 8.7 percent). The company said total volume was down 7.5 percent in the period.

With regard to the Premium segment, in particular, revenues in the first half grew by 26 percent to 1,086.9

million euro. In the Car business alone, Premium revenues in the half accounted for 50.5 percent of the total,

an increase of approximately 4.5 percentage points compared with 45.9 percent in the same period in 2011.

The fall in volumes is linked in part to the slowdown in demand stemming from the economic situation,

particularly in Europe, and in part due to reduced production of standard tyres in favour of the

Premium segment.

Pirelli confirms its 2012 profitability target at 800 million

euro at least with an EBIT margin above 12 percent (compared with 580 million euro in 2011, margin 10.3%),

despite the critical macro-economic context. This result will be achieved thanks to the value strategy

based on a focus on Premium products (volumes of which are expected to grow by approximately

20%), the expected growth in price/mix of +11/+12 percent and on a more incisive efficiencies plan,

increased by approximately 30 million euro to approximately 150 million euro (previous target 120

million euro).

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Press release from Pirelli