Pirelli Tire now dominates Pirelli group results

ERJ staff report (DS)

Milan Italy -- Revenues of Pirelli Tyre for the six months to 30 June 2010 amounted to 2,325.3 million euros, up 21.4 percent compared with 1,915.9 million euros in the same period of 2009. As a group, Pirellii & C. SpA recorded consolidated revenues of 2,426.5 million euros, up 19.8 percent compared with 2,026.2 million euros in the first half of 2009. Tyres thus represents around 96 percent of Pirelli revenues.

In the second quarter, tyre unit sales stood at 1,215.3 million euros, up 22.9 percent compared with 989.0 million euros in the second quarter of 2009. In that period, the organic increase was 17.6 percent, with volumes up 7.5 percent and price/mix up 10.1 percent. The positive contribution of the exchange rate in the quarter amounted to 5.3 percent.

The company said net profit for the first half amounted to 110.4 million euros (after financial charges of 38.7 million euros and tax of 68.6 million euros), doubled from the 54.2 million euros in the first half of 2009. In the second quarter, net profit was 60.3 million euros compared to 39.6 million euros in the corresponding period of 2009.

In the Consumer business (Car/Light Truck and Motorcycle tyres), revenues in the half-year period amounted to 1,616.7 million euros, up 17.8 percent compared with 1,372 million euros in the first half of 2009, while the operating income from ordinary business before restructuring charges stood at 154.2 million euros (96.4 million euros in the first half of 2009), or 9.5 percent of sales (7 percent in the corresponding period of 2009). While revenues increased bu nearly 18 percent, volumes increased by only 10.5 percent reflecting higher average selling prices.

Both the Original Equipment channel and the Replacement channel reported market growth in the first half compared with the same period in 2009. In Original Equipment, in particular, there was growth in all areas of reference, with Europe up 22 percent, Nafta +73 percent and Mercosur +17 percent; in the Replacement channel +11 percent in Europe, +8 percent in Nafta and 20 percent growth in Mercosur).

In the Industrial business (Industrial Vehicle tyres and Steelcord) revenues amounted to 708.6 million euros overall, up 30.3 percent compared with 543.9 million euros in the same period of 2009, while EBIT from ordinary business before restructuring charges stood at 71.0 million euros, or 10 percent of sales, compared with 50.1 million euros in the first half of 2009, with a margin on sales of 9.2 percent.

The organic increase in sales was 24.9 percent: sales volumes were overall 16.9 percent greater than in the first half of 2009, the price/mix variation was 8.0 percent, and the positive impact from exchange rates was 5.4 percent.

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Press release from Pirelli