MILAN, Italy — Pirelli & C. S.p.A. registered a modest gain in pre-tax operating income in fiscal 2023 over 2022 on 0.5% higher sales revenue.
The adjusted operating income (EBIT) rose 2.5% to $1.08 billion on revenue of $7.19 billion, raising the earnings ratio slightly to 15.1%. Net income was up 13.8% to $503.7 million.
Pirelli cited the positive effects of the price/mix component and operating efficiencies for helping offset the negatives of raw-materials costs, inflation and reduced sales volumes.
The revenue increase was due to the improved price/mix, which offset the negative effects of 1.8% lower sales volumes, Pirelli said.
Pirelli at this time did not disclose its 2023 performance by region. At the nine-month mark, revenue in North America was up 10.7%.
For 2024, Pirelli expects revenue to improve by roughly 1% to 2%, based on estimated volume growth of 1.5% to 2.5% and a continuing shift to higher value-added tires and phase-down of lower-value "standard" tires.
Profitability is expected to improve progressively improve, with an adjusted EBIT margin in 2024 of between 15% and 15.5%, and further growth in 2025 to 16%. Pirelli cites commercial performance and price/mix along with factors that will offset the negative impacts of raw materials and exchange rates, for the expected improvement.
