MILAN, Italy (May16, 2001) – Pirelli Tire L.L.C., Pirelli S.p.A.'s U.S. operating unit, reported a $114.2 million net loss in fiscal 2000 while sales edged up 1.4 percent to $174.4 million, according to the company's recently released annual report.
Nearly the entire loss can be attributed to the closing of Pirelli's Hanford, Calif., tire plant, a spokesman said. The company's operating loss was about $6 million, he said. The Hanford plant ceased operation Jan. 4 and the company since has reached settlements with the plant's workforce, the spokesman said.
Pirelli's North American operations have reported losses in 11 of the last 12 years.
The company said its distribution deal with Cooper Tire & Rubber Co. contributed to an increase in unit sales of Pirelli brand tires. For 2001, Pirelli does not anticipate further sales increases, because consumer demand for tires last year was extraordinarily high due to the effects of the Firestone recall.