Pirelli & Cie SpA posted $5.6 billion in net sales during the first nine months of 2023, a 2.5% year-over-year increase.
Pirelli’s EBITDA for the first nine months of the year totaled $855 million, a year-over-year gain of nearly 4%.
The company credits sales gains to a “strong price/mix improvement.”
Pirelli’s volume declined by 3% during the first nine months of 2023. This “reflected the general weakness of market demand and Pirelli’s selective strategy,” according to company officials.
However, during the third quarter of 2023, Pirelli’s volume of 18-inch and larger tires grew by 1%, “consistent with the market, but with differing momentums between the two channels:” 1% growth in replacement and minus-1% in original equipment.
Pirelli “further reduced its exposure” in the 17-inch and under segment, where its volume declined 10%.
“For the third quarter of 2023, the price/mix improved by 6.8% due to the effect of price increases” implemented during the last quarter of 2022 and in the first three months of this year.
Busy in North America
Pirelli has enjoyed an active 2023 in North America.
The company recently opened a new research and development center at its consumer tire plant in Silao, Mexico, part of a $15 million investment Pirelliis making in the complex.
"Mexico represents a strategic area for Pirelli's activities in North and Central America," says Claudio Zanardo, president and CEO of Pirelli North America.
In early-November, Pirelli announced its TireClub+ B2B tire sales platform is available in the U.S.
"The latest version of TireClub+ makes ordering easier and checking which tires are available faster and more intuitive, thanks to new filters that simplify search results," say Pirelli officials.
The company also launched its new associate dealer program, the Pirelli Performance Program for independent tire retailers and their sales teams to earn rewards on eligible Pirelli tires sold at retail.
The program “has the support of” Turbo Wholesale Tires, American Tire Distributors Inc. and U.S. AutoForce LLC, according to Pirelli officials.
“The Pirelli Performance Program offers independent premium tire dealers the opportunity to substantially grow their business,” says Zanardo.
Trends in car markets
Pirelli reports that the global automotive tire market fell by 1% during the first nine months of 2023 versus the same period last year. “Volume performance for the OE channel was more sustained than for the replacement channel.”
Demand for large-diameter tires, which Pirelli defines as 18 inches and up, “was more resilient,” while demand for smaller-diameter tires “was weak,” posting a 3% decline versus the first nine months of 2022.
Full-year outlook
Based on current results, Pirelli expects to achieve total revenue of $7.2 billion for full-year 2023, with volumes down 2%.
