Pirelli tyres expected to report rise in revenue and orders

  • Facebook
  • Twitter
  • Google Plus
  • Add to favorites
  • Email
  • RSS

By Denna Bowman

Pirelli tyres is scheduled to report its fourth quarter results tomorrow and analysts anticipate a rise in revenues due to an increase in sales.

Deutsche Bank Equity Research estimates the Italian tyres manufacturer saw a 15 per cent increase in unit sales compared with decreases in the previous nine months, according to Tyres and Accessories magazine.

It also reports on the negative price mix (a price mix of -2% vs. 6.9% in Q1, 5.6% in Q2 and 4.7% in Q3) has allowed Pirelli to gain marketshare on the continued discipline of manufacturers and a 2% positive foreign exchange impact.

Deutsche Bank predicts margins should benefit from low raw material prices, as the large price increases for these commodities took place in 2010.

The bank anticipates consolidated sales of 1,112 million euros, 46% more year-on-year after more than 20% decline in the first half of the year, and organic debit of 80 million euros.

Net income is expected to be 1.8 million euros, as compared to a loss of 296 million euros in the fourth quarter of 2008. Restructuring costs during the quarter should be 45 million euros, as opposed to 95 million euros in the final quarter of 2008.

Share and Enjoy