Pirelli reports high value segment growth

Strengthening of its ‘high value segment’ in the nine months to 30 September 2017 has helped Pirelli to increase its turnover by 9.0 per cent over this period, to 4.04 billion euros. High value segment turnover rose 13.0 per cent year-on-year to 2.34 billion euros; sales of ‘standard’ tyres only rose 4.0 per cent, to 1.69 billion euros. The 6.7 per cent turnover growth achieved in Europe was below average; only the Russia/CIS and Middle East/Africa regions showed weaker development.

EBIT rose 9.7 per cent year-on-year to 681.2 million euros, while the EBIT margin increased slightly from 16.7 per cent a year earlier to 16.9 per cent. Net profit for ongoing operations (consumer), 35.8 million euros on 30 September 2016, rose to 198.9 million euros.

For full-year 2017, Pirelli projects a 9.0 per cent growth in turnover, to 5.4 billion euros, with further improvements in the high value segment. This segment is expected to account for 57 per cent of Pirelli’s entire turnover this year, as opposed to 55 per cent in 2016. Projected full-year adjusted EBIT (before non-reoccurring and restructuring charges and before start-up costs) is approximately 930 million euro, an increase of 10.2 per cent. The high value segment is expected to account for around 83 per cent of this result, up from 81 per cent at the end of 2016.