Pirelli's sales increase 6.9% in 2004

Feb. 28, 2005

Pirelli & Cie SpA reported operating income of 380 million euros on revenues of 7.13 billion euros for the 2004 fiscal year ended Dec. 31.

That compares favorably to operating income of 268 million euros on sales of 6.67 billion euros in 2003. Pirelli's operating income and sales were up 41.8% and 6.9%, respectively.

Based on the year-end exchange rate, Pirelli posted operating income of $515.5 million on sales of $9.67 billion in 2004.

Tire sales, part of Pirelli's Industrial Sector, totaled 3.25 billion euros ($4.4 billion) for the year, an increase of 11.5%. Pirelli says approximately 8% of the increase is the result of increased volumes; the remaining increase is attributable to prices and mix, "thus confirming the focus on high performance segments."

Operating income for the company's Tyres Sector was close to 275 million euros last year compared to 220 Euros in 2003.

Overall, Pirelli says its preliminary and unaudited consolidated financial statements showed "significant improvement (in) all the economic indicators."