Known for its style, speed and performance marketing values, Pirelli & C. S.p.A. is a multinational company based in Milan, Italy, listed on the Milan Stock Exchange since 1922, with a temporary privatization period by the consortium led by the Chinese state-owned enterprise ChemChina.
The Pirelli Grand Prix Challenge, which first went live in the US in 2011, has now been expanded to the UK market. The tyre maker has high expectations for the online Formula One prediction game – last year, the American GP Challenge website received 140,000 unique visits and had over 700,000 page views. Prizes to be won through the challenge include a trip to the 2013 United States Grand Prix in Austin, Texas.
While financial analysts described the results as “a big beat”, on the day the news was announced Pirelli’s share price fell 10 per cent. Pirelli pre-tax profitability was said to have been better than consensus of analysts’ estimates, mostly due to better price/mix and cost control. Market watchers also welcomed the fact that margins are at record levels.
Pirelli & C. SpA has announced first quarter revenues of 1.556.5 billion euros, up 11.1 per cent compared with 1,400.9 million euros in 31 March 2011. Pre-tax profits (EBIT) after restructuring charges grew by almost half to 209.4 million euros (up 46.1 per cent compared with 143.3 million in the first quarter 2011).
Pirelli’s 2011 annual report will reflect the tyre manufacturer’s “broader narrative”, presenting detail that goes beyond the numbers in an attempt to capture the spirit of Pirelli. The company said the project will include Art Deco inspired illustrations reflecting the tyre-maker’s values, in addition to texts by internationally renowned authors HM Enzensberger, Guillermo Martinez, William Least Heat-Moon and Javier Cerca. A summary of the report will also be available through a free iPad App.
Pirelli’s Dr Francesco Gori is stepping down from his position as the company’s chief operation officer. The announcement follows continued speculation as to the future of Dr Gori, which began with newspaper reports that he was leaving to take up a new position outside of the tyre business. A terse statement confirming the news simply stated the fact that Gori is subject to a three-year non-competition clause and that “the company expresses its appreciation to Francesco Gori for the significant contribution to the Group’s results and development made in 33 years of service.” No details were given as to exactly when this decision takes effect.
Goodyear’s Eagle F1 Asymmetric 2 and Continental’s ContiWinterContact TS 830 P have won Auto Express’s best summer tyre and best winter tyre crowns in the magazine’s 2012 product awards.
Ahead of Pirelli’s latest financial results, rumours are circulating between the press and financial analysts that Pirelli COO Francesco Gori could be about to resign. A report from analysts Morgan Stanley cites an article in the Italian newspaper "Il Corriere della Sera" today (8th May) making this suggestion.
Pirelli itself has reportedly been quite non-committal in its response. Morgan Stanley reports that it has “spoken to the company this morning and this was neither denied or confirmed. The company have signalled before that they are looking to simplify their organisational structure, however unconfirmed rumours in the industry are that there were clashes between the CEO (and owner) Tronchetti on Pirelli’s long term strategy."
This year the World Superbike Championship celebrates its 25th anniversary, and Pirelli – who has been involved in the series from its inception and as sole supplier since 2004 – has decided to mark the occasion by creating an exclusive version of the Superpole tyre the riders will use at Monza on 5 May to decide the starting order for the next day’s races.
After the fast, abrasive Thruxton surface, the British Superbike series moves to Oulton Park where the more flowing nature of the circuit and make-up of the asphalt means softer Pirelli Diablo Superbike tyres may well be effective.
Pirelli has responded to Formula One fans’ criticism of the perceived poor performance, and specifically the rapid wear of the Italian manufacturer’s F1 tyres. In a video interview, Pirelli motorsport director Paul Hembery shared that a short-lived tyre was part of the ‘brief’ the tyre maker received from Formula One empresario Bernie Ecclestone.
Double British Rally Champion and former Pirelli Star Driver Keith Cronin claimed victory on this weekend’s Pirelli International Rally, the third round of the 2012 Pirelli-supported MSA British Rally Championship. Pirelli Star Driver Jukka Korhonen shone in his TEG-prepared Skoda Fabia R2 at the weekend, securing his best finish of the season with sixth overall, and second in class. Meanwhile, a sterling performance in a Ford Fiesta R2 allowed 21-year old, Jussi Kumpumaki who is part of the Finnish Ford Junior Team, was presented with the coveted Pirelli yellow jersey and a nomination towards the end of season Pirelli Star Driver shoot out.
While the Formula One season currently involves 20 long weekends across most of the world’s continents – Africa and Antarctica continue to hold out – tyre supplier Pirelli is adding a mid-week run at Mugello, Italy from 1-3 May; the first time that in-season testing has been seen in Formula One since September 2008 (excluding last year’s Abu Dhabi young driver test). The manufacturer explains that the test will allow for greater understanding of the way the P Zero, and Cinturato if rain is forthcoming, tyres work, “accumulating more data” and allowing some of the team’s “third drivers to get time in a Formula One car on the current tyres.” This is the first mid-season test since Bridgestone completed a session in 2008, though pre-, and post-season sessions are common practice.
Maxxis-sponsored Swan Yamaha got its 2012 MCE Insurance British Superbike Championship campaign off to a flying start at round two, when reigning champion Tommy Hill posted a double podium finish. The brand says it is reaping the benefit of its sponsorship deal thanks to the exposure it provides, not least through the TV coverage, to one of the tyre manufacturer’s key consumer audiences. The company said that it eagerly awaits round three of the series at Oulton Park. Hill’s two second places at Thruxton mean he is lying fourth in the overall standings after two rounds. All championship competitors ride on Pirelli Diablo tyres.
Pirelli will be at Donington Park this weekend (28-29 April), supporting the GT Cup Championship for the third consecutive year at its opening round. The championship has introduced GT3 homologated cars for the first time in its five-year history, and with a steadily expanding entry list, and a 23-race calendar the season is hotly anticipated. World-class brands such as McLaren, Porsche, Ferrari, Mosler, BMW, TVR and Chevron are involved, and all will roll on Pirelli’s slick DM and DH compound and wet WS and WH compound tyres. Due to the various cars appearing on the GT Cup grid, Pirelli will supply a range of different tyre sizes will be on offer to competitors.
Last November, Pirelli signed a Memorandum of Understanding with Indonesian automotive component manufacturer PT Astra Otoparts Tbk regarding a joint venture factory. Now, on 24 April, the tyre maker reports it has signed an agreement with Astra to build a new factory in Indonesia – its first in this country – for the production of cross-ply motorcycle tyres.
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