Pirelli revises 2010 forecasts upwards

ERJ staff report (TB)

Milan, Italy -- Pirelli & C. S.p.A. is revising upward its sales and earnings projections for fiscal 2010 based on the firm's better-than-expected financial performance through nine months, the board of directors disclosed.

Pirelli now expects corporate fiscal 2010 pre-tax operating income to hit about 380 million euros, or 7.5 percent of sales, with sales above 4.9 billion euros. Pirelli Tyre S.p.A.'s operating earnings should reach 420 million euros, or about 8.5 percent of the projected sales of 4.7 billion euros.

For the nine months ended Sept. 30, Pirelli registered a 65-percent increase in pre-tax operating income to more than 300 million euros, according to preliminary results. Sales jumped 19 percent to 3.7 billion euros.

Pirelli Tyre registered operating earnings of more than 330 million euros-a jump of about 50 percent over 2009 and equal to 9.4 percent of sales, which rose 20 percent to roughly 3.5 billion euros , the company said.

Pirelli attributed the improvements to volume growth, a positive price/mix contribution and internal efficiencies, which “more than compensated” for the impact of higher raw material costs and other production factors.

Pirelli also is forecasting its net financial debt will fall below 700 million euros.

Pirelli plans to present its corporate strategic direction for 2011-2013-with its vision of the scenario to 2015-to the financial community on Nov. 4.

From Tire Business (A Crain publication)

Press release from Pirelli