MILAN, Italy — Pirelli & C. S.p.A. is raising its sales outlook for the year for a second time after reporting a strong first half and in light of price/mix improvements it anticipates to drive growth.
The Italian tire maker now anticipates revenues to be between $5.6 billion and $5.7 billion, up from previous estimate of $5.3 and $5.5 billion announced in May.
In a results statement Aug 2, Pirelli said due to additional price increases, the price/mix impact for the year was expected to improve to 13.5-14.5% this year, up from previous indications of 10-11%.
For the first half of 2022, Pirelli reported a 77% rise in net profit to $212 million while adjusted earnings (EBITDA) rose 21% to $632 million.
Revenue for the first six months of the year grew 24.6% to $2.9 billion, driven by the 20% impact of increased prices and mix improvement and a 5% positive foreign currency effect.
The growth was achieved amid a 1% decline in overall volumes, as demand for standard tires fell 8.8%. The 'high value' big-rim-sized tires continued to strengthen with a 5.8% growth in volume.
In sales, Pirelli said replacement market for 18-inch and bigger tires was "solid," particularly in the European Union and North America. The company also witnessed a market rebound in the second quarter within the OE market, with strong focus on 19-inch and electric vehicles (EV).
During the period, Pirelli said it continued with its efficiencies plan and achieved $46.8 million in gross savings, or 35% of full year target.
In terms of production, Pirelli said capacity deployment during the first half was "in line with full year target," but production saturation stood at 90% due to COVID shutdowns in China and production woes in Russia.