Pirelli First Half EBIT Predicted to be Up on Strong Tyre Result

Pirelli & C SpA’s first half EBIT profit, due to be announced on Thursday, analysts said, citing the real estate and tyre operations as key to the growth. According to the AFX news agency, EBIT is seen at 235-250 million, up from 216 million in the first half of 2006, while EBITDA will rise to 344-374 million euros, from 324 million, they said, adding that the net figure will only be announced in September. In comments specifically on the second quarter, Deutsche Bank said in a note it sees tyre operations EBITDA up 4.5 per cent. For the first half, a Milan analyst said she sees tyre activities contributing an EBIT of 201 million euros, up 3.1 per cent year-on-year, in her overall first half EBIT estimate for 250 million.

Analysts said they don’t expect the first half results to include any comment on a possible buy-back of a 39 per cent stake in Pirelli’s tyre unit that was sold to banks last year. Deutsche Bank said it favours a buy-back of the tyre unit, followed by a spin-off of the unit to Pirelli shareholders, giving them a pure tyre sector investment play, plus a holding company.