MILAN,Italy (June 18, 2002) — Pirelli S.p.A. has confirmed that its commercial vehicle tire operation is no longer for sale.
This sector of Pirelli's tire business will in the future be headed by Alberto Pirelli and be based in Milan, Pirelli said.
“Pirelli is in the best position to manage and develop its assets, as demonstrated by its improved performance against major competitors, and given the group's ability to finance its own growth, there is no necessity for any sale,” Pirelli Chairman Marco Tronchetti Provera said in a statement.
“Restructuring within the Pirelli Group and its new three-year plan show good prospects in terms of profitability and cash flow,” he added. Pirelli announced in August 2001 that it was putting the truck tire business, along with its energy cables business, up for sale as part of its move to take control of Telecom Italia and concentrate more on the telecommunications sector.
The truck Tire Business Staff Reported $790 million in sales last year, or 31 percent of Pirelli's tire revenues.