MILAN, Italy—Pirelli & C. S.p.A. registered a modest gain in pre-tax operating income in fiscal 2023 over 2022 on 0.5 percent higher sales revenue.
The adjusted operating income (EBIT) rose 2.5 percent to $1.08 billion on revenue of $7.19 billion, raising the earnings ratio slightly to 15.1 percent. Net income was up 13.8 percent to $503.7 million.
Pirelli cited the positive effects of the price/mix component and operating efficiencies for helping offset the negatives of raw-materials costs, inflation and reduced sales volumes.
The revenue increase was due to the improved price/mix, which offset the negative effects of 1.8 percent lower sales volumes, Pirelli said.
Pirelli at this time did not disclose its 2023 performance by region. At the nine-month mark, revenue in North America was up 10.7 percent.
For 2024, Pirelli expects revenue to improve by roughly 1 percent to 2 percent, based on estimated volume growth of 1.5 percent to 2.5 percent and a continuing shift to higher value-added tires and phase-down of lower-value "standard" tires.
Profitability is expected to improve progressively improve, with an adjusted EBIT margin in 2024 of between 15 percent and 15.5 percent, and further growth in 2025 to 16 percent. Pirelli cites commercial performance and price/mix along with factors that will offset the negative impacts of raw materials and exchange rates, for the expected improvement.
