Pirelli reviewing European commercial structure

ERJ staff report (RPN)

Milan Italy – Pirelli & C. S.p.A. is reviewing its European commercial structure, particularly its high-end tire production capacity, and might integrate that capacity with markets that offer the greatest demand for premium products.

Pirelli disclosed the possible restructuring in a press release announcing the delay until November of the release of its 2013-17 Industrial Plan. It said delaying this presentation will allow management time to prepare more "coherent" medium- to long-range forecasts in light of the continuously evolving business environment.

Pirelli was scheduled to release its latest four-year strategic blueprint on May 8. This will now take place in November following the presentation of the firm's nine-month financial results.

In particular, Pirelli cited the rapidly developing markets and the U.S., where premium demand is growing at a rate about three times faster than that of global demand for car tires. In Europe, on the other hand, the persisting economic crisis is having a clear impact on consumption and therefore on the demand for tires, even premium ones.

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