Pirelli posts increase in net income of nearly 11%
Pirelli SpA posted net income of 62.4 million euros on net sales of 1.3 billion euros for its first quarter ended March 31, 2008. That compares to income of 56.3 million euros on sales of 1.8 billion euros for the same period in 2007.
Based on the currency exchange rate at the close of the quarter, Pirelli recorded net income of $98.5 million on net sales of $2 billion in 1Q 2008. Its income-to-sales ratio was 4.7%.
When the effect of sales relating to deconsolidation of the real estate assets of Deutsche Grundvermogen AG (DGAG) are eliminated from 1Q 2007 sales, Pirelli's sales were up 2.1%. (Pirelli, through its Pirelli & Cie Real Estate SpA subsidiary, purchased 96.83% of DGAG, a German real estate company, in January 2007.)
Financial results for Pirelli & Cie SpA include sales from Pirelli Real Estate, Pirelli Tyre and Pirelli Tech. Pirelli Tyre recorded net income of 57.7 million euros on net sales of more than 1 billion euros for the first quarter of 2008.
Compared to the previous year, Pirelli Tyre income was down 0.7% (partly due to "negative market trends in Europe and North America," according to the company), while sales were up 1.6%.