Pirelli have reported that its tyres division has experienced “signs of recovery” in March.
It is however a sign of the recessionary times that the Italian tyres firm is basing its optimism not on profits gains, but on the slowdown in sales decline in some countries and positive growth rates in others.
Various government incentives to boost new car sales partly contributed to this reversal of fortune, following Original Equipment (OE) business contraction in the first two months of the year.
Pirelli revenues up to the end of March 009 are down 13.9 per cent, amounting to 926.9 million Euros from 1,076.9 million in the corresponding period of 2008.
It is hoped that the cash-incentives to stimulate the new car market – like the one given the go ahead for the UK in the budget last week – will led to more car sales and in turn healthier orders for the tyre manufacturers.
Denna Bowman, Head Office