MILAN — Pirelli & C. S.p.A. has increased its first quarter adjusted earnings (adjusted EBITDA) by 4.6% compared to the first quarter of 2024, helped by improved price/mix and volumes.
The Milan-based tire maker reported adjusted earnings of $405.5 million, on stable sales of $1.8 billion fo rQ1 2024 that ended March 31.
Adjusted earnings before income and tax (EBIT) rose 5.8% compared to Q1 2023 to $283 million, with adjusted EBIT margin improving to 15.5% from 14.6% reported last year.
Pirelli, which recently announced it a strategic focus on larger diameter rim passenger tires, said the volume of passenger car tires with rim diameters of 18 inches or more grew 6.8% , including an 11.4% growth in the replacement channel. Pirelli's volumes in original equipment passenger tire were relatively flat, at .9%.
Pirelli reported that volumes for Q1 increased 2.3% compared to Q1 2023, with price/mix contributing another 2.3% to sales growth,.
Pirelli said that"hyperinflation" in Turkey and Argentina, along the weakness of the dollar and yuan against the euro,more than offset the gains with a 4.8% negative impact.
Price/mix, according to Pirelli, improved on "progressive migration" from standard tires to high-value larger tires and the improvement of the channel mix.
Elsewhere, Pirelli linked the growth in adjusted EBIT to the combined $46 million positive contribution of price/mix and volumes.
Pirelli said a $35 million positive effect of efficiency programs helped to offset the $31 million effect of "inflation of input factors."
The lower cost of raw materials contributed $31.7 million to earnings, which was offset by the $41.7 million negative effect of currency exchange.