Pirelli Posts First Half Results

Its consolidated revenues amounted to approximately 3,570 million euros, a figure which was up by 8.3 per cent compared with the same period last year. Operating income amounted to 190 million euros, a 33 per cent increase against the 142 million euros of last year. While the consolidated return on sales of 5.3 per cent saw a small growth compared to the 4.3 per cent figure of 2003, however, it must be remembered that the 2003 figure included 10 million euros from the Ciena settlement.

The Olimpia SpA effect in the first half 2004 was positive by approximately 52 million euros (-45 million euros in same period last year), due to Telecom Italia dividends, which were accounted for cash when received in the second quarter, against financial charges of the period.

Industrial operations posted a strong growth of operating income, due to the performance of Tyres Sector, which recorded its best quarter in the last ten years. Sales in the tyre sector amounted to approximately 1,645 million euros, compared to 1,509 million euros in the first half of 2003 (+ 11.1 per cent net of the effects of exchange rates and metal prices). Whilst operating income reached 154 million euros and return on sales grew to 9.4 per cent, an improvement of 19 per cent compared to 129 million euros in the same period of 2003.

As a result of the figures Pirelli has confirmed forecasts for a further increase in results in all sectors, both at operating and net level.

The board of directors is expected to meet on 9 September to examine definitive financial statements for the six months period ended on 30 June.