MILAN, Italy (July 27, 2006) — Pirelli & C. S.p.A., buoyed by strong earnings and sales growth by its Pirelli Tyre unit, reported solid earnings in the six-month period ended June 30.
Pirelli reported operating income of $270 million, a 6.7-percent increase over 2005, on 3.4-percent better sales of $3.06 billion.
Pirelli Tyre's operating income of $243.7 million was up 4.1 percent over 2005 while sales grew 12.4 percent to $2.52 billion on the strength of increased volumes and better product mix, the company said. As a result, the operating earnings ratio fell slightly to 9.6 percent, reflecting the impact of higher raw materials costs and the start-up effect of the company's new factory in China.
Pirelli management forecasts an improvement in operating results for the full year, but did not quantify the improvement.