Premium growth boosts Pirelli Q1 results

Milan, Italy – Pirelli SpA's net sales dropped 8.4 percent to €1.43 billion for the first quarter 2016 compared to the same period in 2015, the Italian tire-maker announced on 12 May.

However, the company said that it registered a 5.1-percent "organic growth", due mainly to the “significant” improvement of the price/mix component, as well as price increases in emerging markets and higher sales in the replacement segment.

Volumes dropped by just under 1 percent, mainly in emerging markets and the industrial business (truck, farm and industrial tires).

In the premium tire segment, Pirelli saw a volume growth of 11.7 percent, with an organic revenue growth of 10.5 percent to €781.9 million.

Additionally the premium segment accounted for 67.1 percent of Pirelli’s consumer revenues, up by from 61.2 percent in the same period in 2015.

Earnings (EBITDA before non-recurring and restructuring charges) was up 2.5 percent at €290 million for the period under study.

Pirelli reported profit in Europe, Asia-Pasific and Nafta, driven by significant growth in the premium segment.