Pirelli posts net income of 229 million euros through three quarters

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Pirelli & Cie SpA recorded net income of 229 million euros on revenues of 5.3 billion Euros for the first nine months of 2004, ended Sept. 30. That compares to a net loss of 33 million Euros on sales of 4.9 billion euros for the first nine months in 2003.

EBITDA and EBIT (operating income) stood at 538 million euros and 279 million euros, respectively. EBITDA was 10.1% of sales for the first nine months of this year, compared to 9.5% for the same period a year ago.

Pirelli says its industrial operations posted strong growth in operating income thanks to the performance of its Tyres Sector and Energy Cables and Systems Sector. The company also announced its plans to sell a majority interest in the latter.

"In the Energy and Telecom Cables and Systems Sector, Pirelli boasts a position of international leadership in terms of market shares, technologies, profitability improvements and management quality," said the company in its most recent financial report. "These strengths have made it once again of interest to primary institutional investors.

"We have decided, therefore, to set in motion a valorization project for the development of these activities, with the contribution of institutional investors, through a procedure which will allow Pirelli to fully evaluate the different options before it and the different manifestations of interest. The sale of the two sectors will allow (Pirelli & Cie SpA) to acquire fresh resources to allocate to the development of the strategic areas, with the intention of retaining a minority share in the Cables activity."

HereĀ“s how Pirelli fared in its tire sector:

* Sales totaled 2.448 billion euros compared to 2.25 billion euros in the first nine months 2003.

* EBITDA stood at 351 million euros (14.3% of sales), up 13% from last year.

* Operating income was 217 million euros, improvement of 25% compared to 174 million euros in the first nine months 2003.

As of September 30, Pirelli totaled 21,531 employees in it Tyres Sector. That includes 2,692 temporary workers. On Dec. 31, 2003, Pirelli had 20,437 employess, including 1,705 temporary workers.

Overall, Pirelli employed 37,476 workers (including 3,744 temporary workers) on Sept. 30. That compares to 36,337 (including 2,417 temporary workers) at year-end 2003 and 36,863 (including 2,839 temporary workers) on Sept. 30, 2003.

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