Pirelli returns to net profit

Pirelli has published its financial results for 2003, which show positive results from the company’s recent cost-cutting strategy. Group turnover was down slightly to 6.67 billion euro (2002: 6.

72 bn), but turnover in the tyre sector rose from 2.86 billion euro in 2002 to 2.97 billion euro last year.

EBITDA rose from 523 million Euro in 2002 to 628 million for the last year. The operation income is 268 million Euro (2002: 118 million Euro). Net profit increased form -405 million Euro in 2002 to +4 million Euro last year.

Looking at the tyre sector, the turnover rose 11.6 per cent. 7.

5 per cent of this was attributable to increased volumes and the remainder to improved prices and product mix, notably in the high performance sector. Operating income was 220 million euro (2002: 191 m); an increase of 15 per cent, while net profit was 129 million euro (78 m). Overall, prospects for 2004 are bright, says Pirelli as the company expects to continue reaping the benefits of its cost-cutting and simplification measures.