Pirelli Tyre's sales and profits up substantially in Q1

Milan, Italy - Pirelli's tyre sales exceeded €1000 million in the first quarter of 2006, for the first time ever. Overall sales were up 16.1 percent on the same quarter last year, while profits (EBITDA) also rose by 12 percent to €148.7 million, giving a return on sales of almost 15 percent in the tyre division.

Net debt for the tyre unit on 31 March 2006 was €719.9 million. The company said the increase from €237.4 million at end 2005 was mainly due to the reorganisation of the company structure of the tyre sector, in preparation for its stock market listing, and to usual seasonal factors.

Pirelli's statement said "In the Consumer business (Cars and Motorcycles) , sales amounted to 698.9 million euros, an increase of 14.4% compared with the first quarter of 2005. The operating income was 71.7 million euros ( +21.3% compared with 59.1 million euros on 31 March 2005), with a ROS of 10.3% . These results were due to an increase in volumes and the price/mix. On 31 December 2005, the Consumer business unit had sales of 2,524 million euros and an operating income of 202 million with a ROS of 8%. "

it continued, "In the Industrial business, sales were 301.5 million euros, with an increase of 20.2% compared with the first quarter of 2005. The operating income was 27.5 million euros, and broadly in-line with the data on 31 March 2005 (28.6 million), with a ROS of 9.1% due mainly to the increase in the cost of raw materials and the start-up of the new factory in China . In 2005, the Industrial business closed with sales of 1,109 million euros, an operating income of 126.5 million euros and a ROS of 11.4%. "

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Press release from Pirelli