Pirelli reports improved margins for Q3

ERJ staff report (DS)

Milan, Italy -- The revenues of Pirelli Tyre in the nine months to 30 September 2010 totaled 3,559.1 million euros, an increase of 20.3 percent compared with 2,958.6 million euros in the same period of 2009. On a like-for-like basis, growth in the first nine months was 16.7 percent, with a positive contribution coming from both volumes (+8.6 percent) and the price/mix component (+8.1 percent), while foreign exchange brought an increase of 3.6 percent.

The gross operating result (Ebitda) before restructuring costs was 496.9 million euros, an increase of 29.8 percent compared with 382.8 million euros on 30 September 2009, with a margin as a percentage of sales equal to 14.0 percent (12.9 percent on 30 September 2009). In the third quarter, in particular, Ebitda amounted to 173.0 million euros (142.0 million euros in the third quarter 2009), with the Ebitda margin rising to 14.0 percent compared with 13.6 percent in the same period in 2009.

In the Consumer (car/light truck and motorcycle tyres) segment, revenues in the first nine months of 2010 totaled 2,463.8 million euros, an increase of 16.9 percent from 2,108.0 million euros in the same period of 2009, while the operating result from recurring/ordinary activities before restructuring charges was 234.7 million euros (160.5 million euros on 30 September 2009), with a margin as a percentage of revenues of 9.5 percent (7.6 percent in the same period of 2009). The increase in sales volume was 7.1 percent, with the addition of a price/mix increase of 7.0 percent, accompanied by a consequent organic increase in sales of 14.1 percent. Foreign exchange had a positive impact of 2.8 percent.

In the Industrial (tyres for industrial vehicles and steelcord)i business segment, total revenues amounted to 1,095.3 million euros, an increase of 28.8 percent compared with 850.6 million euros in the same period of 2009, while the operating result from recurring/ordinary activities before restructuring charges was 112.0 million euros, with a margin as a percentage of revenues of 10.2 percent, compared with 80.3 million euros on 30 September 2009, and a margin as a percentage of revenues of 9.4 percent.

As for the Industrial segment, the market also recovered in both sales channels when compared to the critical situation in the first nine months of 2009, above all in Mercosur (+58 percent in Original Equipment and +23 percent in Replacement). Sales also rose in Europe with Replacement +46 percent and Original Equipment +22 percent.

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Press release from Pirelli