Pirelli profits up 28% in first half of 2014

ERJ staff report (TP)

Milan, Italy – Pirelli reported a net profit of €192.1 million in its financial results for the first half of 2014.

The figure represents an increase of 28.5% compared to €149.5 million for the same period last year.

Pirelli said the results were due to premium volumes growing by 21.6% (+20.9% in the second quarter), and the price/mix component registering growth of 5.3% (+6% in the second quarter).

The company said its efficiencies plan has continued, delivering benefits of €48.9 million, 54% of the full-year target – the first results of the €350 million, four-year plan (2014-2017) announced in November 2013.

Positive business performances in Europe and the Asia Pacific region were “notable”, with revenues’ growth of approximately 10% and profitability (EBIT margin) above the group’s average (mid-teen for Europe, circa 20% for Asia-Pacific).

In South America, despite "slowdowns in the industrial market and car original equipment, mid-teen profitability was confirmed thanks to price increases to offset forex volatility, mix improvement (product and channel) and the contribution from efficiencies".

In Russia, in particular, the turnaround process continued, with an increase of market share – due to a broadening of the product range and greater territorial coverage – and "positive high-single-digit profitability". The results in the NAFTA (North American Free Trade Agreement) and MEAI (Middle East, Africa, India) areas also improved.

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