Pirelli hit by low volumes, currency effects in third quarter

Milan, Italy – Pirelli & C. SpA has seen its third quarter results impacted by low volumes, operational costs, currency effects.

Earnings (adjusted EBIT) for the three months to end of September fell 2.5% year-on-year to €265 million, on 6.2% lower sales of €1.72 billion, Pirelli reported 9 Nov.

The lower sales figure, it noted, reflected a fall in volumes of 4.6% overall, with 2% growth in the replacement channel and a 1% decline in OE business.

The OE decline, Pirelli noted, was particularly due to “greater selectivity" in Europe and an unfavourable comparison basis following a post-Covid recovery in China last year.

Furthermore, volumes were impacted by Pirelli’s continued efforts to reduce exposure to standard 17” and smaller tires.

In terms of earnings, price/mix and operational efficiencies provided contributions of €104 million and €31 million respectively during the third quarter.

These gains were offset by a €49-million negative impact from increased production costs, €63.5 million impact of foreign currency exchange and the €36 million effect of lower volumes.

Meanwhile, a €22-million gain from lower raw materials costs was partially countered by a €15-million negative impact from increased 'amortisation & other costs'.