Pirelli is enjoying a rise in fortunes. First they secured the deal to become the new exclusive tyres supplier to Formula One and now they are revising their financial projections up for 2010.
The Italian company, which manufacturers premium consumer tyres, is basing the revision on preliminary ‘better-than-expected’ data generated during the first nine months of the year.
Pirelli now expects corporate fiscal 2010 pre-tax operating income to hit $530 million, or 7.5 percent of sales, with sales approaching $7 billion. Pirelli Tyre’s operating earnings should reach $560 million, or about 8.5 percent of the projected sales of $6.6 billion.
For the nine months ending 30th September, Pirelli registered a 65-percent increase in pre-tax operating income to more than $420 million, according to preliminary results. Sales jumped 19 percent to $5.2 billion.
Pirelli Tyre registered operating earnings of more than $460 million—a jump of about 50 percent over 2009 and equal to 9.4 percent of sales, which rose 20 percent to roughly $4.9 billion, the company said.
Pirelli attributed the improvements to volume growth, a positive price/mix contribution and internal efficiencies, which “more than compensated” for the impact of higher raw material costs and other production factors.
Pirelli also is forecasting its net financial debt will fall below $980 million.
Denna Bowman, Head Office