MILAN, Italy (Sept. 13) — Pirelli & C. S.p.A. recorded improved first half sales and earnings, but costs associated with the failed stock market launch of Pirelli Tyre S.p.A. in June held back profits.
Pretax operating earnings rose 12.9 percent to $286.8 million before accounting for costs associated with withdrawing the initial public offering for Pirelli Tyre. Those costs reduced this figure by $15.1 million to $271.1 million. Net income rose 8.7 percent to $242.3 million, and sales for the six months increased by 7.2 percent to $3.07 billion.
The company said the results were especially strong when increases in raw materials in the first half were taken into account.
Pirelli Tyre, the new name for Pirelli´s tire business, reported pretax earnings of $252.3 million, up 7.5 percent, and sales of $2.53 billion, up 12.4 percent.