Pirelli Tyre Post Positive Quarterly Figures
Pirelli &C. SpA have released company financial figures for the quarter up to March 31, 2007, and this data indicates a largely positive three months for Pirelli Tyre. In the first quarter of 2007 Pirelli Tyre registered a 6 per cent increase in sales, in spite of a negative exchange rate effect, and although faced with increases in raw material prices operating income rose compared with the same period in 2006.
Revenues as of 31 March 2007 were equal to 1,060 million euros, up from 1,000.4 million euros in the first quarter of 2006, an increase of 9.1 per cent on a like-for-like basis, net of any exchange rate effect. EBITDA was equal to 150.9 million euros.
Operating income amounted to 103.7 million euros, an increase of 4.5 per cent compared with the first quarter of 2006 when operating income was recorded as 99.2 million euros. The ratio over sales was substantially unchanged compared with last year, despite increases in raw material costs.
Quarterly net profit was 58.1 million euros (after financial charges of 13.8 million euros and tax charges of 31.8 million euros), compared with 61.5 million euros (after financial charges of 10.8 million euros and tax charges of 26.9 million euros) as of 31 March 2006. Pirelli Tyre’s net financial position was 734.7 million euros in the red, a higher figure than last year when the division reported a net debt of 601.5 million euros as of 31 December 2006 and 719.9 million euros as of 31 March 2006. Pirelli state that the increase over the December 2006 results can be chiefly attributed to the seasonal nature of the working capital.
The quarter showed overall growth both for the consumer tyre sector in terms of sales and of results compared with the same period last year. Revenues amounted to 740 million euros, up 6 per cent, while operating income stood at 77.6 million euros, an increase of more than 8 per cent, the result of greater volumes and a better price/mix. Growth in terms of volume was especially pronounced in the high performance tyre sector.
Revenues in the Industrial business were equal to 320 million euros, a 6 per cent increase compared to the same period in 2006, while operating income, equal to 26.1 million euros, declined compared with the figure as of 31 March 2006. Pirelli attribute this decline to operating efficiency and the price/mix not compensating for rises in raw materials costs. Sales of industrial vehicle tyres are reflecting upward market trends and growing steadily.