Profitability up at Pirelli as premium segment grows

ERJ staff report (LMH)

Milan, Italy - Pirelli & C Spa says its profitability in the first nine months of 2012 has grown, with earnings (EBIT) totalling Euro 529.8 million, a 31-percent increase year-on-year, while operating margin is 13 percent, up from 10.6 percent on 30 Sept 2011.

In its 12 Nov financial report, Pirelli noted that revenues are up 7.2 percent totalling Euro 4574 million. Net profit for the first nine months of the year reached Euro 308.3 million, a 22.7 percent increase.

The premium segment continues to grow for the company with sales up 23.5 percent at Euro 1612 million, and volume up 13.5 percent. Pirelli said it aims to achieve global leadership in this market in 2015.

In the tyre business, earnings were up 26.4 percent at Euro 612.3 million on sales of Euro 452.9 million (+7.5 percent). Operating margin was 13.5 percent from 11.5 percent on 30 Sept 2011.

Pirelli said the positive results' performance was particularly significant considering the overall reduction of sales' volumes in tyre activities, which fell 6.8 percent during the first nine months of the year because of “the persistent difficulties of the global macro-economic scenario, in particular in the countries of southern Europe.”

Meanwhile, Reuters is reporting that Pirelli's chairman Marco Tronchetti Provera is to go to trial over the alleged use of Telecom Italia data to spy on Italy's elite. The first hearing is scheduled for 18 Feb, Reuters reports.

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News release from Pirelli

Article from Reuters