AKRON-Cost-cutting measures helped bolster earnings for both Pirelli S.p.A. and Continental A.G. in fiscal 1994, according to preliminary results released by the companies. In spite of the eight-month labor strike at its U.S. plants, Pirelli S.p.A. and its majority-owned Pirelli Tyre Holding N.V. unit posted net profits for the first time since 1990, reflecting cost-containment measures instituted the past two years, the firms said.
Likewise, Conti credits extensive restructuring measures taken to cut costs for its 24-percent jump in pre-tax earnings. Its U.S. unit, Continental General Tire Inc., broke even on an operating basis, but will report a net loss due to provisions for restructuring, Conti said.
Pirelli S.p.A. said sales increased 6 percent over 1993 to $6.19 billion, whereas Pirelli Tyre's sales slid 2.1 percent to $3.02 billion, due in part to the the sale of its U.S. farm tire plant. That aside, PTH's sales rose 1.7 percent, as income crept $2 million into the black.
Meanwhile, Conti's sales climbed 5.4 percent to $6.11 billion, while pre-tax earnings leapt to $56.8 million.