MILAN, Italy (Oct. 14, 2010)—Pirelli & C. S.p.A. is revising upward its sales and earnings projections for fiscal 2010 based on the firm's better-than-expected financial performance through nine months, the board of directors disclosed today.
Pirelli now expects corporate fiscal 2010 pretax operating income to hit $530 million, or 7.5 percent of sales, with sales approaching $7 billion. Pirelli Tyre S.p.A.'s operating earnings should reach $560 million, or about 8.5 percent of the projected sales of $6.6 billion.
For the nine months ended Sept. 30, Pirelli registered a 65-percent increase in pretax operating income to more than $420 million, according to preliminary results. Sales jumped 19 percent to $5.2 billion.
Pirelli Tyre registered operating earnings of more than $460 million—a jump of about 50 percent over 2009 and equal to 9.4 percent of sales, which rose 20 percent to roughly $4.9 billion, the company said.
Pirelli attributed the improvements to volume growth, a positive price/mix contribution and internal efficiencies, which “more than compensated” for the impact of higher raw material costs and other production factors.