Pirelli achieves double digit growth in 2005
Pirelli & Cie SpA achieved double digit growth in revenues (up 14.6%), operating profit (up 32%), and net profit (up 31.3%) in 2005 versus 2004. It also reduced its debt to 1.17 million euros at the end of 2005.
Pirelli's tire revenue last year totaled 3.6 million euros, an 11% increase over previous year levels.
Operating income for the company's tire sector was 329 million euros, a 54 million euro increase over 2004 operating income.
"The net profit (after financial charges of 34 million euros and fiscal charges of 97 million euros) was a positive 198 million euros, an increase of 18.6% from 167 million euros in 2004," say Pirelli officials.
"In 2005, Pirelli Tyre reinforced the growth trend of 2004, reaching a higher rate of growth than the reference market in which it operates in terms of profitability.
"The excellent performance of 2005 was the result of a continued focus on the product mix, price increases and volume increases, which more than offset higher energy and raw material costs in the context of less-than-brilliant market demand.
"In the consumer segment, the group saw a rise in volumes and sales, particularly in North America, and in the premium segment there were improvements in all geographical area and for the winter products in Europe.
"In the industrial segment, 2005 saw a positive growth trend, especially in original equipment, and from the launch of truck radial production in Yanzhou, China, which will serve the Chinese market and also South East Asia and Australia."