MILAN, Italy (Nov. 13, 2012)—Pirelli & C. S.p.A.'s operating income improved in the three- and nine-month periods ended Sept. 30 while revenues grew on the strength of higher pricing and a stronger premium mix.
Pre-tax operating earnings grew 19.2 percent in the third quarter to $246.9 million on 5.1-percent better sales of $2 billion, yielding a 12.4-percent operating ratio—a 1.5 percentage point gain. Net income fell 6.4 percent to $111.3 million.
Sales were up despite drops in unit volumes in both the consumer (passenger, light truck and motorcycle) and industrial (truck tires and steel cord) businesses, Pirelli said. Revenue also fell in the industrial sector, the Milan-based company said, as volume was off nearly 10 percent.
For the nine months, operating income jumped 31 percent to $762 million, while sales rose 7.2 percent to $5.88 billion. Net income rose 22.7 percent to $389.8 million.
The revenue gain came despite 6.8-percent lower sales volume, Pirelli said, reflecting the firm's strategic focus on higher-priced premium products. Unit sales of premium products, for example, grew 12.5 percent in the quarter and were up 23.5 percent for the nine months.
By business unit, Pirelli said the consumer segment reported 9-percent higher sales in the quarter and 12.8 percent for the nine months. The industrial sector, on the other hand, suffered 3.3- and 5-percent drops for the respective reporting periods.
Pirelli did not disclose at this time its performance by geographic region.