Pirelli earnings down on higher costs

ERJ staff report (TB)

Milan, Italy (Feb. 11, 2009) - Higher raw material costs and lower original equipment revenues combined to drive down Pirelli Tyre SpA's pre-tax operating earnings 30 percent last year to Euro 250 million.

Sales overall were down 1.5 percent to euro 4100 million, Pirelli said, although they fell 5 percent during the fourth quarter. Pirelli said in a preliminary earnings report its spending on raw materials last year was up more than Euro 195 million over 2007.

To counter the negative impact of the current economic scene, Pirelli said it undertook unspecified restructuring actions - accelerated in the fourth quarter against further deterioration of the market - to strengthen the competitiveness of the industrial organisation in Europe and reduce costs of central structures.

From Tire Business (A Crain publication)