Investor Channel is the communication channel between Pirelli and the financial community. Analysts, shareholders and web users can use the channel for direct dialogue with the Group. The blog is moderated by Pirelli Investor Relations.
Concerns on the macro-economic scenario and on the Euro drove stock market performance in the week from the 19th to the 23rd of September (Milan -6.1%, London -5.6%, Frankfurt -6.8%, paris -7.3%).
Sales were recorded in all cyclical sectors: -8.3% the Industrial sector, -10.5% the Auto & Parts one.
During the week Morgan Stanley and Societé Générale revised their 2012 estimates for the auto and tire market. Their hypothesis is for a slowdown for the demand in mature markets (mainly Europe), and a smaller growth as regards the emerging markets. Having reduced sector market forecasts, their estimates fall by an average of 10% for 2012 and the price targets have inevitably scaled back.
Pirelli closed the week at 5.16€, losing 11.3%, in line with the peers (Michelin -11.1%, Continental -13.6%, Nokian -12.2%).
SG and MS keep their Buy recomendation, while the TP is now respectively 7.3€ (from 8.0€) and 7.5€ (from 9.0€). According to the brokers, Pirelli should keep outperforming its peers given its focus on premium and its exposure on emerging markets.
Red Bull Racing driver Sebastian Vettel has claimed his ninth victory of the year with Pirelli, but second place for McLaren’s Jenson Button, Vettel’s only potential challenger, means that the title fight will continue to the next round in Japan.
The Singapore Grand Prix – held at night with temperatures in excess of 30 degrees centigrade and humidity close to 80% – is one of the toughest races of the season, taking the longest time to complete and requiring the heaviest fuel load. This places huge demands on the tyres, particularly with constant impacts against the kerbing and 23 corners testing traction to the limit.
Vettel sealed his victory with a three-stop strategy, starting on the supersoft tyre before switching to the soft tyre twice for two longer stints in the middle of the race. The German, on course to become the youngest double world champion in Formula One history, ended the race on the supersoft tyre, managing his strategy perfectly to lead from start to finish.
Just after half-distance an accident brought out the safety car (which has appeared at every grand prix so far in Singapore) and eroded Vettel’s 22-second lead, delivering an extra aspect to the tyre strategy as most of the frontrunners pitted for fresh tyres.
The speed differential between the soft and the supersoft tyre, just over a second per lap, created plenty of overtaking opportunities throughout the race, with some spectacular moves from start to finish. McLaren’s Lewis Hamilton dropped out of the lead battle following contact with Felipe Massa, but despite accident damage, a drive-through penalty and five visits to the pits, he used the speed of both the soft and the supersoft compounds to climb back up to fifth place at the finish.
Pirelli’s motorsport director Paul Hembery commented: “We’ve seen a truly spectacular race under the lights of Singapore, where tyre strategy was key. The heat, humidity and length of the race made it a tough event for our tyres, but both the compounds performed faultlessly over two hours. There were no particular issues and degradation was at a normal level given the characteristics of this race. This was one of the most complicated races strategy-wise of the entire year and we saw a wide variety of tactics being employed by all the teams. Once more we were treated to a grandstand finish, with Jenson Button chasing down Sebastian Vettel all the way to the chequered flag. The organisers have done another brilliant job here, making Singapore one of the highlights of the Formula One season.”