MILAN—Pirelli & C. S.p.A. increased its first quarter adjusted earnings (adjusted EBITDA) by 4.6 percent compared to the first quarter of 2024, helped by improved price/mix and volumes.
The Milan-based tire maker reported adjusted earnings of $405.5 million, on stable sales of $1.8 billion for Q1 2024, ended March 31.
Adjusted earnings before income and tax (EBIT) rose 5.8 percent compared to Q1 2023 to $283 million, with adjusted EBIT margin improving to 15.5 percent from 14.6 percent reported last year.
Pirelli, which recently announced a strategic focus on larger diameter rim passenger tires, said the volume of passenger car tires with rim diameters of 18 inches or more grew 6.8 percent, including an 11.4-percent growth in the replacement channel. Pirelli's volumes in original equipment passenger tire were relatively flat, at 0.9 percent.
Pirelli reported that volumes for Q1 increased 2.3 percent compared to Q1 2023, with price/mix contributing another 2.3 percent to sales growth.
Pirelli said "hyperinflation" in Turkey and Argentina, along with the weakness of the dollar and yuan against the euro, more than offset the gains with a 4.8 percent negative impact.
Price/mix, according to Pirelli, improved on "progressive migration" from standard tires to high-value larger tires and the improvement of the channel mix.
Elsewhere, Pirelli linked the growth in adjusted EBIT to the combined $46 million positive contribution of price/mix and volumes.
Pirelli said a $35 million positive effect of efficiency programs helped to offset the $31 million effect of "inflation of input factors."
The lower cost of raw materials contributed $31.7 million to earnings, which was offset by the $41.7 million negative effect of currency exchange.
