Pirelli Tyre income, sales down in Q1

ERJ staff report (TB)

Milan, Italy -- Pirelli Tyre suffered double-digit drops in earnings and sales in the quarter ended March 31, but management said the results were an improvement over the fourth quarter and are in line with the company's projections for the current fiscal year.

Pirelli Tyre reported a 74.7-percent drop in net income to Euro 14.6 million and a 40.7-percent drop in pre-tax operating income to euro61 million, while sales fell 13.9 percent to Euro 927 million.

Within Pirelli Tyre, the consumer business - car, light truck and motorcycle tyres - reported a 42.6-percent drop in operating earnings (EBIT) to euro 41.9 million as sales fell 10.4 percent to euro 670.5 million. Pirelli attributed much of the decline to the sagging original equipment business and said market contraction in the replacement segment was more limited.

The industrial business - tyres for industrial vehicles and steelcord - reported a 36.8-percent drop in operating income and a 22-percent decline in sales.

Pirelli said it was able to maintain “good levels of relative profitability” because of its strategic positioning, having 87 percent of its production in low-cost areas and 75 percent of sales in emerging markets.

From Tire Business (A Crain publication)

Presentation from Pirelli