MILAN, Italy (July 28, 2011)—Pirelli Tyre S.p.A. reported markedly higher profits for the three and six months ended June 30 on double-digit sales growth.
For the second quarter, Pirelli Tyre reported 23.2-percent higher net income of $104.2 million on 13.3-percent higher sales of $1.93 billion. For the first half, net income was up 47.5 percent to $228.3 million, and sales grew 18.7 percent to $3.87 billion.
Pirelli attributed the improvements to both volume growth (up 3.5 percent) and changes in the price/mix ratio (up 15.9 percent).
As a result of the first-half gains and lower-than-predicted raw material price rises, Pirelli executives are raising the firm's earnings forecast for fiscal 2011, with a pre-tax operating income ratio of 10 to 11 percent expected, up roughly one percentage point.
The gains more than offset the negative impact of increased raw material costs, which dragged down earnings by nearly $300 million.
In the consumer segment—passenger, light truck and motorcycle tires—first half sales jumped 20.1 percent to $2.72 billion. The unit's operating result was $338.1 million, an increase of 63.7 percent and equal to 12.4 percent of revenues.
Pirelli said sales in the NAFTA region were up 20 percent in the first half, although aftermarket shipments were off 5 percent in the second quarter.