Milan, Italy – Pirelli & C. SpA has seen its profitability grow in the first three months of the year, helped by improved price/mix and cost-reduction plans.
In a 15 May financial statement, the Italian tire maker posted a 9.5% year-on-year increase in earnings (adjusted EBITDA) to €315.6 million, on 1.2% higher sales of €1.3 billion.
Pirelli attributed the growth partially to a 7.7% improvement of price/mix, which offset higher materials costs, negative exchange rate impact and volumes declines.
During the period, Pirelli achieved just under €30 million through industrial-efficiency and cost-reduction measures.
In terms of sales, Pirelli saw a 5.3% increase in its ‘high-value’ tire revenue, to €895 million.
With a 16.6% decline in volumes, standard tires registered a 6% drop in sales to €418 million.
Total volumes decreased by 6.5%, with a negative impact of €37.7 million.
Pirelli reported a year-on-year rise of €27 million in raw material prices and a €2.1 million negative currency impact for the quarter.