Pirelli says Q2 saw improvements over Q1

ERJ staff report (DS)

Milan, Italy -- The Pirelli & C. Group closed the second quarter of 2009 with revenues of 2,137.6 million euros and EBIT of 101.1 million euros, with an EBIT margin of 4.7%, after 21.2 million euros of restructuring charges.

Pirelli Tyre said it began to benefit in the second quarter from the positive impact of falling raw materials prices and from the first signals of recovery in the market, though still in a scenario characterized by negative growth in major markets. Revenues of Pirelli Tyre as of 30 June 2009 amounted to 1,915.9 million euros, down 11.6% from 2,166.3 million euros in the corresponding period of 2008. Net of the effect of exchange rates, a negative effect of 2.3%, the organic variation amounted to a 9.3% decline, with a negative variation in volumes of 15.7% and a positive price/mix variation of 6.4%.

From an operational point of view, all this brought in the second quarter results which, though in absolute value terms lower than a year ago, show improved profitability: the EBITDA margin stood at 13.4% in the second quarter compared with 12.4% in the second quarter of 2008, and the EBIT margin before charges stood at 8.6% compared with 8.1% in the second quarter of 2008. Overall the first half of 2009 closed with sales down by 9.3% on a like-for -like basis compared with the corresponding period of 2008, and profitability (the ratio between EBIT and sales, or EBIT margin), equal to 7.1%, in line with the targets in the industrial plan for 2009.

In the Consumer business (Car/Light Truck and Motorcycle tyres), revenues in the half amounted to 1,372 million euros, with an 8.2% decline (-6.4% organic decline, net of exchange rate effects) compared with the first half of 2008 (1,494.3 million euros), while the operating result before restructuring charges amounted to 96.5 million euros, or 7% of revenues, compared with 126.3 million euros in the corresponding period of 2008.

In the Industrial business (Industrial Vehicle tyres and Steelcord) revenues amounted overall to 543.9 million euros, down 19.1% compared with the corresponding period in 2008 (672 million euros), while EBIT before restructuring charges amounted to 50.1 million euros, or 9.2% of revenues, compared with 64.7 million euros in the first half of 2008, or 9.6% of revenues.

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Press release from Pirelli