Skip to main content
Sister Publication Links
  • Rubber News
  • European Rubber Journal
Subscribe
  • Login
  • Register
  • Subscribe
  • Current Issue
  • BEST PLACES TO WORK
  • News
    • HUMANITARIAN
    • TIRE MAKERS
    • COMMERCIAL TIRE
    • GOVERNMENT & LAW
    • MERGERS & ACQUISITIONS
    • OBITUARIES
    • OPINION
    • MID YEAR REPORT
    • SERVICE ZONE
  • ADAS
  • Data
    • DATA STORE
  • Custom
    • SPONSORED CONTENT
  • Resources
    • Events
    • DIRECTORY
    • CLASSIFIEDS
    • SHOP FLOOR
    • AWARDS
    • ASK THE EXPERT
    • LIVESTREAMS
    • WEBINARS
    • SEMA LIVESTREAMS
    • RUBBER NEWS EVENTS
    • BALANCING
    • DEMOUNTING
    • SAFETY
    • TIRE REPAIR
    • TPMS
    • TRAINING
    • VEHICLE LIFTING
    • WHEEL TORQUE
    • Best Places to Work
  • ADVERTISE
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. Coronavirus
April 06, 2020 01:17 PM

Pirelli targets savings, cuts sales outlook by over $1 billion

European Rubber Journal
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    MILAN — Pirelli & C. S.p.A has introduced a series of cost-cutting measures to mitigate the economic effects of the COVID-19 crisis on the group's profitability and cash flow.

    The Italian tire maker also has lowered its sales estimates by more than $1.1 billion for fiscal 2020, and is set to "reformulate" targets for the year as it braces for a global economic slowdown caused by the global pandemic.

    The cutbacks will target discretionary costs, marketing and communication activities, renegotiation of supplier contracts as well as prioritizing investments in research and development and efficiencies, Pirelli said.

    Moreover, the company said that, as of March 20, it temporarily had suspended production at all of its factories — except for China — in response to COVID-19 outbreak.

    In China, following the suspension of activities for about a month in two factories, activity gradually is returning to normal, Pirelli added.

    As a result of the economic slowdown and plant closures, the Italian tire maker now expects annual revenue to come in at $4.7 billion to $4.9 billion, down 16% to 18% from the prior forecast.

    To limit the impact on profitability, Pirelli said it is reducing planned investments nearly 60% to $145 million in 2020.

    The Milan-based group is also canceling the 2019 dividend, while reducing compensations for the board, the CEO and the top management of the company. Executive vice chairman and CEO Marco Tronchetti Provera will take a 50% cut in gross fixed annual compensation.

    Remuneration of Pirelli board members will be cut by 50%, while the gross fixed annual salary of company managers will be reduced by 20%.

    The pay and bonus cuts are expected to result in the saving of €31 million, according to Pirelli's statement.

    Pirelli went on to state that it would revise its recently launched Industrial Plan 2020-2022 in the fourth quarter of this year.

    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Tire Business would love to hear from you. Email your letter to Editor Don Detore at [email protected].

    Most Popular
    1
    Icahn-owned Auto Plus files for Chapter 11 protection
    2
    Goodyear to trim jobs amid 'uncertain' economic outlook
    3
    Gills Point S acquires Hogan Tires of Maine
    4
    Bridgestone Americas creates corporate philanthropy post
    5
    Truck sector leads U.S. tire market; consumer down
    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Newsletter Center

    Staying current is easy with Tire Business delivered straight to your inbox.

    SUBSCRIBE TODAY

    Subscribe to Tire Business

    SUBSCRIBE
    Connect with Us
    • Facebook
    • LinkedIn
    • Twitter
    • Instagram
    • RSS

    Our Mission

    Tire Business is an award-winning publication dedicated to providing the latest news, data and insights into the tire and automotive service industries.

    Reader Services
    • Staff
    • About Us
    • Site Map
    • Industry Sites
    • Order Reprints
    • Customer Service: 877-320-1716
    Partner Sites
    • Rubber News
    • European Rubber Journal
    • Automotive News
    • Plastics News
    • Urethanes Technology
    RESOURCES
    • Advertise
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Media Guide
    • Editorial Calendar
    • Classified Rates
    • Digital Edition
    • Careers
    • Ad Choices Ad Choices
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • BEST PLACES TO WORK
    • News
      • HUMANITARIAN
      • TIRE MAKERS
      • COMMERCIAL TIRE
      • GOVERNMENT & LAW
      • MERGERS & ACQUISITIONS
      • OBITUARIES
      • OPINION
      • MID YEAR REPORT
      • SERVICE ZONE
    • ADAS
    • Data
      • DATA STORE
    • Custom
      • SPONSORED CONTENT
    • Resources
      • Events
        • ASK THE EXPERT
        • LIVESTREAMS
        • WEBINARS
        • SEMA LIVESTREAMS
        • RUBBER NEWS EVENTS
      • DIRECTORY
      • CLASSIFIEDS
      • SHOP FLOOR
        • BALANCING
        • DEMOUNTING
        • SAFETY
        • TIRE REPAIR
        • TPMS
        • TRAINING
        • VEHICLE LIFTING
        • WHEEL TORQUE
      • AWARDS
        • Best Places to Work
    • ADVERTISE
    • DIGITAL EDITION