NEW HAVEN, Conn. (June 29)—Pirelli Tire North America Inc. sank deeper into the red last year as sales fell 12.9 percent, according to Pirelli S.p.A. figures. Pirelli attributed the losses to "consolidation of our business into the Pirelli brand," according to a company spokesman. He declined to comment on the specifics of Pirelli´s 1999 financial report. Pirelli Tire´s net loss of $10.7 million was 25.9 percent greater than in 1998, and sales fell to $172 million from $198.5 million. Pirelli discontinued many of its broadline products, including its Formula brand and its Armstrong-brand light truck tires, in 1999. The elimination of those and other associate brands was the result of Pirelli´s strategic alliance with Cooper Tire & Rubber Co. last year, in which the two tire makers agreed to a multibrand strategy. The 1999 sales decline also was a result of Pirelli´s exit from the Sam´s Club distribution channel, another decision affected by the Cooper alliance, the spokesman said.
Pirelli Tire N.A. falls deeper into red
Rubber News wants to hear from its readers. If you want to express your opinion on a story or issue, email your letter to Editor Bruce Meyer at [email protected].