Pirelli H1 net profit surges 28.5%
With a double digit surge in its premium products sales, an increase in demand from Europe and APAC markets, and continuing price/mix improvement, Italian tyre maker Pirelli’s net profit for the first six months ended June 30 surged 28.5% to 192.1 million euros. The company’s net profit was 149.5 million euros in the same period last year.
In the second quarter ended June 30, Pirelli’s net profit jumped 30.7% to 101.7 million euros as against 77.8 million euros in the same quarter of 2013.
“The results for the first half of 2014 show growth in the main economic indicators thanks to the strengthening of the Premium segment, continuing price/mix improvement and the implementation of the efficiency plan,” said the company.
Pirelli’s first half premium volume grew 21.6% on an increased market share in all geographic areas, while the price/mix component registered a growth of 5.3% , as a result of improved product mixes in all business segments and price increases in emerging markets offset forex volatility.
Consolidated sales of the company in the first six months increased by 6.7% to 2,986.9 million euros. Despite a decline of 7.4% in volume in industrial business, a 5.1% increase in consumer business lifted the company’s total volume growth by 1.8%.
Pirelli, during the announcement o the H1 results, maintained its outlook for FY 2014. The company targets a 1% increase in revenue to around 6.2 billion euros