MILAN, Italy (May 2, 2002)—Pirelli Tire L.L.C., Pirelli S.p.A.'s U.S. operating unit, was $9.14 million in the black last year, despite a 9.1-percent drop in sales, to $158.5 million, according to information in Pirelli's annual report.
The positive net result was in stark contrast to the $114.2 million loss reported in 2000, when the company accounted for the costs of closing its Hanford, Calif., tire plant.
Pirelli blamed part of the sales decline to lost business with Sears, Roebuck and Co. and attributed its improved earnings to a better product mix, a spokesman said. The profit is only the second positive result in the past 12 years.
Pirelli recently decided to end a North American marketing agreement with Cooper Tire & Rubber Co., and instead will resume control itself starting in July of the marketing of its products in the U.S. and Canada. Cooper will continue to handle distribution of Pirelli products.