TYRE MARKET WATCH

Pirelli publishes “Tyre market watch“, a new information service for analysts, investors and stakeholders in general.
With “Tyre market watch”, which may be accessed in the Investor Relations section of the Pirelli website, every month Pirelli will communicate the market trends per business (Car & Light Truck; Truck) and channel (Original Equipment and Replacement) in the main geographical areas. The data for Europe, NAFTA and Mercosur will be available on around the 16th of each month, and the data for China and Japan will be updated a little later.
 
The service can be accessed at the following link: http://www.pirelli.com/web/investors/tyre_markets_trend/default.page

PIRELLI: 'SUSTAINABILITY YEARBOOK 2010', WORLD SECTOR LEADER FOR THE THIRD YEAR IN A ROW

Pirelli confirms and improves its leadership in sustainability. The ’2010 Sustainability Yearbook’ not only places Pirelli as ‘Sector Leader’ and ‘Gold Class Company’ in the ‘Autoparts and Tyres’ sector for the third year in a row, but also awards the company, for the first time, the title of  ‘Sector Mover’ thanks to further significant growth in terms of sustainable performance. Pirelli has thus obtained all three of the prestigious top titles, confirming its leadership in sustainability in its industry both at worldwide level and in Italy.
Edited by SAM Group, the Swiss Asset Manager responsible for the evaluations for admission to the Dow Jones sustainability indices, and by PriceWaterhouseCoopers, the ‘Sustainability Yearbook’ is considered the most complete and authoritative publication in the world on trends and corporate performance in terms of sustainability.

Go to Sustainability Yearbook 2010

PEERS & MARKETS

18-22 January 2010 was a bad week on international share markets, ending over three per cent down. In Europe sales mainly concerned the banking sector (-6.2% on the European reference index), auto& parts (-5.7%) and basic resources (-5.5%). The main drivers behind performance on the stock exchange being the reform of the US banking sector and fears of a fall in demand in 2010. Pirelli ended the week (€0.42, -6.5%) in line with the European auto&parts sector. During the week Goldman Sachs raised the target price to 0.61€ (from 0.50€) confirming the Neutral recommendation. The upside reflects both the improved evaluation of Pirelli Tyre (positive forecasts for the tyre business in 2010) and the annulment of the holding discount (of 15%) on the NAV (according to the broker this is Pirelli’s strong commitment to becoming a pure tyre player). The positive outlook for Pirelli was also confirmed by Morgan Stanley (TP €0.52, Overweight) and Equita (TP €0.51, Buy) with the Consensus Target Price settling at 0.483€ on a coverage of 18 brokers, 71% the BUYs, 29% the Holds.  A downward turn for Pirelli RE by -2.9% in line with the European real estate market (-2.1% Epra index).