Pirelli sales up 16.6% in 2011, profits beat target margin
Pirelli & C. SpA’s has released fourth quarter and full year 2011 results showing consolidated revenues in 2011 totalled 5,654.8 million euro, an increase of 16.6 per cent from 4,848.4 million euros in 2010. Consolidated operating income after restructuring charges was 581.9 million euros compared with 407.8 million euros in 2010, and with a 10.3 per cent margin compared with the target of “around 10 per cent” announced last November. This is almost two percentage points higher than the 8.4 per cent achieved in 2010.
The tyre maker up its 2012 targets in response to the news and, according to the Reuters news agency, shares were up 9.3 per cent by 15:02 GMT.
Product mix in the Tyre Business that dominates the company (99 per cent of sales) seems to have been key to the company’s apparent “significant growth”. Premium revenues grew by 27 per cent in 2011, reaching 1,844 million euros and those generated by the Car Business alone accounted for 50 per cent of total. The operating result after restructuring charges totalled 643.9 million euros, an increase of 42.1 per cent from 453.1 million in 2010. Pirelli also saved 93.9 million euros in efficiencies.
Summing up the company gave a brief progress update on international operations: “We continued the construction of the Settimo Torinese industrial hub – the group’s most technologically advanced facility – and the strengthening of our presence in Romania, where the Slatina industrial hub was extended.
“In Argentina, plans were made for the construction of a new radial truck tyre manufacturing plant. The construction of the new site in Mexico, to serve Nafta markets, was close to completion and production is expected to begin in the first quarter of 2012.
At the same time the company revealed that its Russian plans (worked together with partner Russian Technologies) are continuing following the acquisition of two production facilities, Kirov and Voronezh, which was completed at the end of 2011. This, say company representatives, will enable Pirelli to begin its own production in a highly strategic market. It is also worth pointing out that the financial figures include the effect of the first part of the payment for the acquisition of plants in Russia worth 55 million euros.
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