Pirelli First Half Figures

First half sales of the Pirelli group totalled 3.022 billion Euro, down 9.8
per cent on the 1H 2002 figure of 3.35 bn Euro, preliminary, unaudited
figures show. However, when exchange rate fluctuations and changes due to
consolidation are factored out, sales actually increased by 3.3 per cent.
Group operating income (EBIT) for 1H was 118 million Euro, surpassing the
total for the whole of 2002 and the return on sales was 3.9 per cent,
compared with 1H 2002 ROS of 2.8 per cent.
The performance of the Tyres Sector was positive, with sales reaching 1.509
billion Euro; 1.4 per cent up on the 1H 2002 figure of 1.488 bn. Net of
exchange rate effects, the sector showed a positive growth of 14.4 per
cent, 8 per cent of which was due to volume increases and 6.4 per cent to
improved prices and mix. EBIT was 127 million Euro (1H 2002: 111 m) and ROS
8.4 per cent (7.5 per cent last year). Volumes and efficiency measures had
a positive impact, helping to offset increased costs and exchange rate
effects, estimated at 20 million Euro.
Of the other sectors, both Energy Cables and Systems and Telecom Cables and
Systems showed a fall in turnover and EBIT.
Net debt declined to 1.54 billion Euro from the 31st March 2003 figure of
1.65 billion and is in line with the company’s latest Three Year Plan, says
Pirelli. The company also made the point that it is totally committed to
research and development and investments in this area for the first six
months totalled 104 million Euro, or 3.4 per cent of sales, in keeping with
the previous year.
The outlook, says Pirelli, “is still marked by uncertainty” but the company
regards the results achieved in the first half as on course to meet the
objectives for the year of an increase in operating income for the Tyres
and Energy Cables and Systems sectors and an improvement in operating
income of the Telecom Cables and Systems sector, where a break-even result
is forecast for the final quarter of the year.