Pirelli Tyre posts higher profits in third quarter

ERJ staff report (DS)

Milan, Italy -- Revenues of Pirelli Tyre in the three months to 30 Sept. 2009 amounted to 1,042.7 million euros, down by just 1.9% compared with 1,062.9 million euros in the third quarter of 2008. EBITDA before restructuring charges amounted to 142.0 million euros compared with 91.8 million euros a year earlier.

Revenues for the nine months amounted to 2,108 million euros, down 4.5% (-2.6% organically, net of exchange rate effects) compared with the first nine months of 2008 (2,207.9 million euros), while EBIT before restructuring charges was 160.5 million euros, up 15.5% compared with 139 million euros in the first nine months of 2008. EBIT as a percentage of revenues improved to 7.6% compared with 6.3% in the corresponding period of 2008.

In the Consumer business, revenuesfor the three months rose by 3.1 percent to 736 million euros, while EBIT before restructuring charges rose to 64.1 million euros from 12.7 million euros.

Pirelli said the strong improvement in the third quarter was linked to the decline in raw materials costs, the focus on price/mix, actions for greater competitiveness and a recovery in the market, accompanied by sales growth at higher rates than the market in all areas. The Replacement channel - in particular - showed growth rates higher than in the corresponding period of 2008 and the Original Equipment channel rates of decline that were smaller than in the previous quarters.

In the Industrial business three-month sales fell to 306.7 million euros from euro 349.3 million a year previously and EBIT before restructuring charges was slightly higher, at 30.2 million euros (from euro 28.1 million).

Pirelli said the industrial segment is more cyclical because it is linked to macro-economic performance. As such, it registered a slowdown in both tyres and in steelcord in the first nine months of 2009.

This is an external link and should open in a new window. If the window does not appear, please check your pop-up blocking software. ERJ is not responsible for the content of external sites.

Press release from Pirelli