Milan, Italy – Pirelli C. & SpA reported higher fiscal 2018 operating earnings and sales, led by strong "high value" product sales during the year.
Adjusted pre-tax operating income rose 8.2% to €1 billion, before start-up costs related to a variety of new initiatives, on 2.9% lower sales of €5.2 billion, yielding a slightly higher operating ratio of 19.2%.
The ‘high value’ segment registered growth in all regions, with sales up 10% compared to the year before.
It contributed to 63.7% of Pirelli's total sales, compared to 57.5% the previous year.
Pirelli has previously outlined four categories of high-value products.
They include ‘prestige’ which developed with luxury car makers; ‘new premium’ tires with diameter of 18 inches or more; ‘speciality tires’ such as runflats and colour editions; and ‘premium moto’, which are high-end motorcycle tires.
Pirelli made a total of €463.4 million of investment in 2018, mainly in high value R&D and production.
Since its acquisition by ChemChina in 2016, Pirelli has relaunched itself as a ‘pure consumer tire company’ supplying car, moto and bicycle tires globally.
The company has repeatedly stated that its global strategy was to shift focus from standard tires on the “high value” segment.