Pirelli Reaffirms Positive Guidance
Pirelli & C SpA has reaffirmed its guidance for “significant improvement” in full-year results compared with 2004. The news follows strong nine-month results, which saw net profits rise 34 per cent.
Revenue in the first nine months of 2005 was 2,707 million euros, an increase of 9.8 per cent compared with 2,466 million euros on 30 September 2004. EBITDA was 412 million euros (15.2 per cent of sales), an increase of 17.7 per cent from 350 million euros in the first nine months of last year.
Pirelli puts its positive performance down to a “continued focus on the product mix, price increases and volume growth, which more than offset the further rise in raw materials prices and energy costs, and in the context of less than brilliant market demand.” The consumer business (car and motorbike tyres is report to have seen positive growth in the higher market segments, both in North America and, especially with winter products in Europe. The Industrial business also grew, particularly in original equipment: in the third quarter. Radial truck tyre production started in China.