MILAN, Italy—Prometeon Tyre Group has posted a 6.1 percent year-on-year drop in earnings (EBITDA) on consolidated sales of $1.1 billion for 2020—15 percent lower than prior-year revenue.
The figures, noted Prometeon, show an improved EBITDA margin—13.6 percent compared to 12.3 percent in 2019—despite the global pandemic which hit industrial tire demand and led to instability in currency trends, mainly in emerging countries.
Indeed, of the 15 percent drop in revenue, 12 percent was due to adverse effect of exchange rate fluctuations, according to the Italian tire manufacturer.
In terms of its regional market, Prometeon said revenues "were substantially in line" with those of the previous year, with EMEA dropping 2 percent and the Americas falling 1 percent. Negative currency factors led to a 20 percent drop in Latin America.
Since its spin-off from Pirelli in 2017, Prometeon implemented improvement strategies in areas, such as product development, manufacturing and marketing as well as management of its supply chain relationships and human resources.
During the fiscal year, the group's turnaround path, which began in 2018, "was brought to a conclusion," the Italy-based maker of industrial tires said April 20.
"We are stronger and more resilient: we improve margins, protect cash and strengthen asset structure, despite the pandemic," CEO Giorgio Bruno and Gregorio Borgo chief operating officer jointly said in a statement.
In its 2021 guidance, Prometeon said the market remains strongly impacted by the ongoing pandemic, adding that it is moving forward with the implementation of a commercial and cost-efficiency action plan.
The company's goals include market-share improvement and enhanced positioning in the Tier 1 segment, by strengthening partnerships with OEMs and expanding the range of services offered to customers.
Prometeon added that it will also continue to focus on cost efficiencies, competitiveness projects and cash generation.