MILAN, Italy (Aug. 4, 2003) — Pirelli S.p.A. reported an improved first half financial performance on “increasingly good” tire division results, despite turmoil in the cable sector.
Tire division operating earnings rose 14.4 percent, to $141 million, shoring up the S.p.A. operating earnings, which edged up 3.2 percent, to $309 million, despite a loss in the telecommunications cable sector.
Tire sector sales inched up slightly to $1.68 billion, although Pirelli said the increase would have been closer to 14 percent when the exchange rate fluctuation is factored out. Tire tonnage sales were up 8 percent, the company said.
The increased business volume and efficiency measures in the tire sector had a positive impact on the earnings figure and offset an increase in unit costs and the negative exchange rates effect of nearly $22 million.
Management expects the tire and energy cable sectors to continue improving throughout the second half and the telecom cable business to reach break-even by the fourth quarter.