Figures Rise For Pirelli Germany

Pirelli Improves Results by More than a Third [5/2000]Pirelli Deutschland AG closed the 1999 business year with a result approximately 33 p.c. above the previous year.

Apart from a dividend of six marks per share shareholders were granted a bonus payment of the same amount. Consolidated turnover of the sub-group was 1.225 billion DM, slightly higher than the previous year’s 1.

174 billion DM. Operating profit amounted to 42.5 million DM, and with investments of 67.

8 million DM in Germany, the sub-group nearly reached the high level of 1998. The size of Pirelli’s workforce in Germany was slightly reduced last year, from 3,424 to 3,351 employees.The Pirelli Deutschland AG subsidiary with the highest turnover, Pirelli Reifenwerke, increased its turnover in 1999 by five per cent to 864.

9 million DM (previous year: 824.1 million DM). This specialist in high-performance summer and winter car tyres improved its original equipment deliveries by approximately 34 p.

c. Exports, in a wide product mix, were of the same order as the year before. In the car/commercial vehicle tyre division unit sales rose by 4.

8 p.c. to 9.

1 million tyres (1998: 8.6 million), but in the replacement business the number of tyres sold was six per cent down on the previous year. Pirelli Reifenwerke invested 55.

0 million DM last year (1998: 60.2 million DM). The bulk of those investments was – like the previous year – in new technological processes, up-dating computer technology and, as always, in measures to improve quality in production, distribution and administration.

The 1999 annual profit amounted to 28.2 million DM (1998: 17.7 million DM), representing a 59.

3 p.c. growth.

Total turnover of the motorcycle tyre division (Metzeler and Pirelli brands) exceeded the previous year’s by 1.4 p.c.

at 185.7 million DM. With its two motorcycle tyre brands Pirelli remains the market leader in Germany, Italy and Europe as a whole.

Market potential rose significantly in 1999, with a worldwide increase in motorcycle tyre sales of seven per cent over the previous year, and more growth expected in the future. Original equipment turnover developed particularly successfully in Japan and Italy, where Metzeler showed a clear improvement. In Europe, however, both brands suffered slight market share losses.

Production rose by 11.9 p.c.

, sales by 3.5 p.c.