Tyre Figures Good, But Telecoms Hurt Pirelli

A two-thirds fall in the world Telecom market has meant a drop of 90 million Euros in profit before interest and tax for the Pirelli group in the first half of 2002. Turnover was down 11.9 per cent to 3.

35 billion Euros, compared with 1H 2001 and group operating profit fell 35 per cent to 278 million Euros. The tyre sector performed well, particularly in the high performance segment, but this was not enough to offset what Pirelli describes as “the unprecedented crisis” in the world telecoms market. The group is carrying out a “cost containment exercise” which it says has resulted in efficiencies totalling 90 million Euros in the first half.