Pirelli's U.S. unit posts $114.2 million loss in 2000

MILAN, Italy (May 16)—Pirelli Tire L.L.C., Pirelli S.p.A.'s U.S. operating unit, reported a $114.2 million net loss in fiscal 2000 while sales edged up 1.4 percent to $174.4 million, according to the firm's recently released annual report. Nearly the entire loss can be attributed to the closing of the company's Hanford, Calif., tire plant, a spokesman said. The firm's operating loss was about $6 million, he said. The Hanford plant ceased operations Jan. 4, and the company since has reached settlements with the plant's work force, the spokesman said. Pirelli said its distribution deal with Cooper Tire & Rubber Co. contributed to a boost in unit sales of Pirelli brand tires. For 2001, Pirelli does not anticipate further sales increases, because consumer demand for tires last year was extraordinarily high due to the effects of the Bridgestone/Firestone Inc. recall.