MILAN, Italy (July 31, 2009)—Pirelli Tyre S.p.A.'s second quarter sales were 7.7 percent below those of a year ago but were 6.7 percent ahead of the 2009 first quarter, reflecting what management termed the “first signals of recovery in the market.”
Management cautioned, though, that the first quarter was particularly sluggish and pointed to a scenario of “negative growth” in most major markets.
For the quarter and first half Pirelli reported sales of $1.39 billion and $2.7 billion, respectively. The first half figure is 11.6 percent below the comparable 2008 number.
First half pre-tax operating income before restructuring charges of $339 million was down 16 percent from a year ago, but earnings in the second quarter were nearly equal to those of last year, as Pirelli began to benefit from the effects of falling raw material prices, enhanced efficiencies from a restructuring program under way and some pickup in the market.
Net income in the half fell 46.7 percent to $76.3 million.
The consumer tire business (car, light truck and motorcycle tires) reported 8.2 percent lower sales of $1.93 billion in the half with operating earnings falling 23.6 percent to $136 million.
The industrial segment (truck tires and steelcord) reported a 19.1-percent drop in sales to $766 million.