Sales and profits rise in Pirelli's tyre business: cables sale finalised

By Liz White, ERJ staff

Milan, Italy-In the first half of 2005, Pirelli Tyres' sales were about Euro 1800 million an 8.3 percent rise over the first half of 2004, the group said.

Operating profit was about Euro 187 million-a return on sales of 10.4 percent, the group added, representing an increase of 21 percent over the first half of 2004.

Growth in volumes, particularly in North America, and the continual drive towards a high margin product mix contributed to the positive performance, despite the price increase in raw materials," Pirelli commented.

At the same time that it announced this good first half performance, the group also said that its agreement to sell its Energy and Telecom Cables and Systems business to Goldman Sachs Capital Partners was completed 1 Aug, following approval from the appropriate authorities.

Pirelli said its net debt will decreases to some Euro 1140 million following the sale of the cables and systems activities' disposal for Euro 1200 million euros.