Pirelli SpA has reported that in the first nine months of 2011, the tire company saw "all economic indicators improved over the period."
Revenues grew by 17.9% to 4,265.8 million euros and profitability improved by 10.6%, Pirelli said. Total consolidated net profit for the first nine months was 251.3 million euros, an increase of 56.8% compared with 160.3 million euros for the same operations and period last year.
Following the publication of positive figures yesterday, Pirelli chairman Marco Tronchetti Provera released details of the manufacturer’s goals between now and 2015. The headlining statement of intent is the desire to be "global premium leader" (following a so-called "local by local" strategy) by 2015. And in order to achieve this, Pirelli is increasing capital investment up to 2.2 billion euros for the period 2011-15.
Pointing out that Europe is still the number one global market when it comes to “premium” tire sales (that segment is 54% of the current global tire business), and that this is predicted to grow 8% by 2015, Tronchetti Provera confirmed earlier analyst reports that Pirelli was issuing higher margin targets – now an estimated EBIT of 15%-16% by 2014.
The tire industry is seen as less cyclical than car business, but a slowdown scenario is still projected for 2012, making the new profitability targets stand out that much more.
The Pirelli R&D department has reportedly completed development of its own TPMS/RFID system for truck fleets. This will be available for commercial vehicles (then cars) in 2012, seven years after Pirelli previewed the technology to journalists in 2005. A second-generation version of the system (measuring friction, wear and aquaplaning performance) is scheduled to hit the market three years later in 2015.
Another technological development that Pirelli has highlighted in the past appears to have made it to market much faster. According to Pirelli, the company’s bio-friendly rice husk silica is already in production in its Brazil factory.
And what is more, this sustainable material is projected to account for 30% of Pirelli Latin American consumption by 2015. This and other future developments will be facilitated by the decision to develop a web of regional R&D centers, allowing better mutual feedback from customers according to Pirelli. Meanwhile, the manufacturer is targeting a 30% reduction in rolling resistance in Scorpion 4×4-SUV range by 2015. (Tyres & Accessories)
