MILAN, Italy — Pirelli & C. S.p.A.'s pre-tax operating income dropped slightly in the quarter ended Sept. 30 on 6.2% lower sales revenue, but Pirelli management nonetheless revised the firm's full year outlook up slightly.
Pre-tax operating earnings (adjusted EBIT) fell 2.5% in the quarter to $288 million, on 6.2% lower sales of $1.87 billion, Pirelli reported. As a result, the operating ratio improved slightly, to 15.4%.
Pirelli cited the impact of lower volumes, operational costs and currency-exchange effects for the earnings decline. Price/mix, operational efficiencies and reduced raw-materials costs offset to a degree the negatives.
The lower revenue figure, it noted, reflected a 4.6% drop in unit sales volumes, in part due to the decline in sales of 17-inch and lower rim-diameter tires.
For the nine-month period, the pre-tax operating income was up 3.4% over the comparable 2022 period to $1.12 billion on 2.5% higher revenue of $5.6 billion, yielding an operating ratio of 20%.
The revenue increase was achieved despite a 3% drop in unit volumes, Pirelli said, citing an improved price/mix component, including price increases implemented in the fourth quarter of fiscal 2022 and first quarter of 2023.
Net income rose 14.5% to $446.7 million.
North America was the only region to generate significant growth during the period, with revenue up 10.7% for the nine months to $1.44 billion, or 23.7% of Pirelli's global sales.
By comparison, Pirelli's business in Europe declined 0.3%, was flat in Asia and rose 0.1% in Latin America and 1.2% in Russia and eastern Europe.
For the full fiscal year, Pirelli said it expects revenues to be up slightly over 2022 despite 2% lower unit sales.