MILAN, Italy—Pirelli & C. S.p.A. has delivered "above-target" results for fiscal 2021, despite raw-materials and logistics challenges in the fourth quarter.
Adjusted pre-tax operating earnings (EBITDA) rose 35.6 percent to $1.42 billion, helped by the improvement of price/mix and efficiencies, which Pirelli said "more than offset" the impact of raw-materials costs as well as currency and inflation headwinds.
Sales revenue came in at $6.3 billion, up 24 percent over 2020, and above previously announced targets, Pirelli reported.
Tire volumes grew 15.7 percent, supported by the higher value, larger-rim-sized segment, which was up 20.2 percent, exceeding the target of 17-18 percent growth. The price/mix component also improved 9.1 percent year-on-year, helping Pirelli achieve higher sales.
For fiscal 2022, Pirelli expects growth to continue, even in a "volatile context" due to inflationary and geopolitical tensions. Efficiencies and the price/mix component will more than offset the impact of the potential headwinds, such as raw materials, inflation and currency exchange issues.
Revenue growth is estimated at 6-7.5 percent based on volume growth of 1.5-2.5 percent.
In the fourth quarter, revenues came in at $1.54 billion, up 11.9 percent. Pirelli linked the growth to the 16.3 percent positive performance of the price/mix, despite a global fall in demand.
Volumes during the final quarter fell 7.3 percent, reflecting a 5 percent decline in original equipment demand, due to the shortage of semi-conductors.
The replacement channel witnessed a 13 percent improvement year-over-year.
Pirelli said its competitiveness program, which it launched in 2020, was "fully on track" in 2021, as the company continued to cut costs by over $180 million and "more than offset" the inflation of production costs.
During the year, the level of capacity utilization returned to 90 percent, as the tire maker concluded the restructuring of its manufacturing footprint in Brazil, Italy and the United Kingdom.
As a result, Pirelli's Bollate, Italy, factory has converted production to cycling tires from standard car tires, and in Brazil, motorcycle tire production was transferred to a plant in Campinas from Gravataì in a move the company said enables both the more efficient supply of the Latin American market and the export channel.
The company also reorganized its factory in Burton-on-Trent, England, to focus on semi-finished goods.
Pirelli now has 15 tire plants, down from 17 in 2019.