MILAN, Italy (July 29)—Pirelli S.p.A. suffered a 49-percent drop in operating income in the first half, to $90 million, as demand for telecommunications cables and systems collapsed, dragging prices down with it. Sales fell 11.9 percent to $3.35 billion, with the drop in telecommunications sales accounting for the decline. The tire sector showed further strong growth in the "top of the range" segments, although Pirelli didn't release details, other than to say the tire sector achieved a positive result. Pirelli said its tire and energy cables and systems sectors´ consistent performances and efficiency efforts in the telecom cables sector should yield earnings progress in the second half
Pirelli's operating income falls on cable sector problems
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