To mark his upcoming 66th birthday on 18 January, Marco Tronchetti Provera granted German newspaper Frankfurter Allgemeine Zeitung a long interview. During this he shared his intention to step down as Pirelli’s chief executive in the coming two years and subsequently sell the family’s 25.1 per cent share in the company. His three children are following their own paths and anyway it is difficult to inherit the role of business entrepreneur. Until last year, Tronchetti was also engaged in a showdown with the Genoa-based Malacalza industrial family. Tronchetti originally invited the Malacalza family to become investors, but later Tronchetti gained the impression they were trying to oust him. In the course of this struggle Francesco Gori, in charge of Pirelli’s tyre business, lost his job. He now serves as an advisor to Malacalza Investitmenti, which is currently the second-largest Pirelli shareholder but openly interested in expanding its involvement.
When Pirelli’s Board of Directors approved a number of changes to the company’s management structure yesterday, it confirmed that position of chief commercial officer will no longer be required. The position will disappear from Pirelli’s management structure at the end of this year and the incumbent chief commercial officer, Andrea Pirondini, will leave Pirelli.
Pirelli has detailed plans to put the second half of its US$400 million investment in the company’s Silao, Mexico factory towards so-called “green performance” tyre production. Mexico’s president Enrique Peña Nieto met with a delegation of Pirelli’s top management who illustrated the progress of the company’s investment in the country at the announcement.
With Pirelli Group spending around 4 billion euro acquiring goods and services in 2012, you can understand why the company wants to honour its best suppliers. That’s why Pirelli today gave out its Supplier Award 2013, in recognition of the suppliers who have “contributed in a significant way to Pirelli’s Premium strategy throughout the world.”
In reporting its 2012 results, Pirelli & C. SpA says it achieved “record profitability” last year thanks to its “focus on premium and efficiencies.” Net profit rose 27.4 per cent year-on-year to 398.2 million euros on the back of a 7.4 per cent increase of sales to 6.1 billion euros. EBIT rose 34.2 per cent to 780.8 million euros and the EBIT margin went up from 10.3 per cent in 2011 to 12.9 per cent last year.
Pirelli has chosen its Carlisle plant as the research and development centre for a new range of eco tyres. The manufacturer said the experience and expertise at Pirelli Carlisle, operational since the 1960s, was a key factor in its decision to stage the development of the next generation of high technology Pirelli green tyres there. The company was recently awarded £2 million from the UK’s Regional Growth Fund, and since being selected as the recipient of the award, Pirelli has announced a further £11.4m investment in the eco tyres project together with a further £9m in new process machinery for volume production. It is estimated that the total investment will create 37 new jobs. On a recent visit to Pirelli’s Carlisle facility, Tyres & Accessories reported the company’s “100 per cent premium” strategy for the site, while also pointing to the likelihood of subsequent private investment implied by the Regional Growth Fund award’s terms. Now Pirelli has confirmed the increased investment to focus on green tyres in Carlisle.
The leadership feud between Pirelli’s two top managers, Marco Tronchetti Provera (64) and Francesco Gori (60), described within the company as a “redefinition of the organisation model”, is a first-class déjà vu experience for many observers of globally active corporations.
Pirelli’s Dr Francesco Gori is stepping down from his position as the company’s chief operation officer. The announcement follows continued speculation as to the future of Dr Gori, which began with newspaper reports that he was leaving to take up a new position outside of the tyre business. A terse statement confirming the news simply stated the fact that Gori is subject to a three-year non-competition clause and that “the company expresses its appreciation to Francesco Gori for the significant contribution to the Group’s results and development made in 33 years of service.” No details were given as to exactly when this decision takes effect.
Pirelli has introduced a Suppliers Awards for the first time, aimed at recognising quality, innovation and competitiveness, in addition to improving the company’s partner relationships. Inaugurating the Pirelli Suppliers’ Awards the company nominated its best suppliers of 2011, as chairman and CEO, Marco Tronchetti Provera and chief purchasing officer, Carlo Costa presided over the ceremony held at the company’s Milan headquarters.
Positive tyre sector demand was seen in Pirelli & C. Spa’s results for the six months ending June 30, 2011. A full 99 per cent of the Italian manufacturer’s group sales are made in the tyre sector and the company reports that results from the first half of the year “demonstrate continuous growth and improvement of all economic indicators.” In particular, a more than doubling of group net profits is attributed to ongoing efficiency programmes and, more significantly, the effectiveness of price mix actions that have seen sales increasingly concentrated in the premium segment, enabling raw material costs to be offset.
Results for the first three months of the current financial year show Pirelli & C. SpA revenues increasing 23.4 per cent year-on-year to 1,401 million euros and a 43.3 per cent growth in the company’s gross operating result (EBITDA) to 203.4 million euros. The operating result (EBIT) before restructuring charges was 146.5 million euros, compared with 90.2 million euros in the first quarter of 2010, while EBIT after restructuring charges was 143.3 million euros, a year-on-year increase of 63.6 per cent. EBIT margin increased from 7.7 per cent in the first quarter of 2010 to 10.2 per cent.
It’s been 150 years since the unified Kingdom of Italy was formed, and to mark the occasion Pirelli presented the country’s head of state with a Formula One tyre resplendent in the tricolour of Italy’s national flag. The presentation took place during a March 19 visit by the President of the Republic, Giorgio Napolitano, and his wife to the Italian tyre maker’s new facility in Settimo Torinese, Turin Province. Escorted by Pirelli chairman Marco Tronchetti Provera and Pirelli Tyre CEO Francesco Gori, Italy’s president toured the new site, which will reach full operational status during the year and be officially inaugurated before the end of 2011. Accompanying Mr. Napolitano and Pirelli’s senior management were a number of regional figures, including the president of the Piedmont region, Roberto Cota, the president of the Turin province, Antonio Saitta, the mayor of Settimo Torinese, Aldo Corgiat Loia, the head of Turin’s prefecture. Alberto Di Pace, and the rector of the Politecnico di Torino, Francesco Profumo.
Pirelli has announced that 12 teams will test out its new Formula One tyres on Friday and Saturday. Tyre spotters amongst you will notice the slick tyres in medium and soft compounds are distinguished by a coloured stripe on the sidewall. Each team will have eight sets of tyres available to them for the two days of testing
The test in the United Arab Emirates marks Pirelli’s return to F1 after a 19-year absence. The Italian tyre company has brought 384 tyres and 30 people to Abu Dhabi for its debut. Pirelli’s Formula One team concluded the first phase of testing, following eight private tests and 7000 kilometres on challenging circuits all over Europe.
Pirelli Tire North America has added a compound mixing facility to MIRS automated tyre manufacturing facility located at the company’s North American headquarters in Rome, Georgia. The $12 million US investment is designed to support the Pirelli Group’s strategic growth plan for the North American market and “help PTNA sustain its market gains and the 30 per cent sales increase realized over the past three years.” Since its inception in 2001, PTNA’s Rome, Georgia facility has benefitted from more than $92 million in investments from Pirelli.
Pirelli Tyre has announced that it has signed the European Road Safety Charter (ERSC), showing its commitment to the reduction of traffic accidents. The Italian manufacturer signed the Charter, promoted by the European Commission, in Rome during the Italian stage of the ERSC’s National Tour. Alessandro D’Este, managing director of Pirelli Tyre Italia and signatory for the Pirelli group, said: “Safety has always been our focus. Pirelli means performance everywhere in the world but there is no performance without suitable levels of safety.