Pirelli posts strong 1Q results
Pirelli & Cie SpA recorded consolidated net income of 81.4 million euros on net revenue of 1.4 billion euros for the first quarter ended March 31, 2011. That compares to revenue of $38.9 million euros on sales of 1.1 billion euros for the same period last year.
Based on the exchange rate on March 31, 2011, Pirelli posted net income of $114.7 million on sales of nearly $2 billion for 1Q 2011.
The company’s Pirelli Tyre subsidiary, which accounts for 98.8% of its sales, benefited from the following:
* ongoing improvement in sales mix -- especially the shift to more premium products;
* “the ability to leverage prices” to offset increases in raw material costs; and
* continuing efficiency improvements.
Pirelli’s board of directors approved the results on May 4.
For its 2010 fiscal year ended Dec. 31, 2010, Pirelli & Cie posted net income of 4.2 million euros on net revenues of 4.8 billion euros. That compared to a net loss of 22.6 million euros on sales of nearly 4.1 billion euros in fiscal 2009.