Pirelli first half earnings doubled as volumes grow

Milan, Italy – Pirelli & C. SpA has seen a strong rebound in first half sales and earnings, helped by a ‘decisive demand recovery’ in its main geographical regions and the positive effects of its competitiveness plant. 

Earnings (EBITDA) for the first six months of the year rose 114% year-on-year to €574 million, on 41% higher sales of €2.5 billion, Pirelli reported 5 Aug. 

Pirelli linked the higher sales to a “significant” 42% growth in volumes, including a 46% increase in ‘high value’ larger rim-sized tires and 38% rise in standard segment.

The trend for the second quarter of the year was particularly marked as group volumes rose nearly 70% year-on-year, representing a 68.8% growth for the ‘high value’ segment, and a 72.9% increase for the standard segment.

Adjusted EBIT increased more than five-fold to €377 million during the six-month period, helped by a €315-million contribution of volumes. 

The positive price/mix effect improved the figure by €47 million or 3%, which substantially offset the €38 million increase in the cost of raw materials.

The higher raw materials’ costs, Pirelli said, was mainly due to the depreciation of the main currencies of the group's manufacturing countries in South America, Romania and Russia.

Adjusted EBIT also improved by the positive effect of the phase 2 of Pirelli’s competitiveness plan which generated structural efficiencies amounting to €82.5 million, while the exchange rate effect had a negative 4.1% (€12.7 million) effect on the figure.