|Pirelli Shares||Results 2010||Tyre||Strategy and Targets||About Pirelli Careers|
- As of 31 December 2010, the Tyre business represented 98% of the total revenue of Pirelli & C. The remaining 2% was composed of minor business lines (Pirelli Ambiente, Pirelli Eco Technology, PZero).
Pirelli closed the year 2010 with profits of € 4.85 billion demonstrating a growth of 19% from the financial year 2009, well above the forecasted targets which were repeatedly reassessed the same year.
This positive trend was mainly sustained by the core Tyre business (+19.5% on an annual basis) due to an effective pricing policy, a progressive improvement in the price/mix and a positive trend in sales volumes in all market sectors.
- Record profitability for Pirelli in 2010: a consolidated (EBIT) margin of 8.4% (+2% from 2009) with a 9.5% (EBIT) margin for the Tyre business. The causes of this positive performance are: continuing improvement of the price/mix in compensation for increasing costs of raw materials, efficient cost management and improved productivity.
- In 2010, the incidence of raw materials was 39% of total revenues. Main components: natural and synthetic rubber which together represented 57% of the total cost of raw materials in 2010.
- The significant improvement in the Tyre business in countries with lower taxation rates (Romania with a rate of 16%, China with a rate of 25%) were vital in achieving a consolidated rate of taxation of 38% (34% for Pirelli Tyre) well anticipating the targets forecasted in the industrial plan for 2011 (reduction of taxation by one/two percent from an expected level of 40% in 2010).
- At the end of 2010, the total gross debt of Pirelli & C. was € 1.1 billion, composed mainly by debts towards banking institutions: Starting in November 2010, Pirelli substantially modified its debt structure:
- diversifying its sources of funding with the issue of a five-year bond for € 500 million,
- extending its maturity to over 4 years (44% of debts are due from 2016 and later) by underwriting a new credit line for € 1.2 billion to replace the previous two existing credit lines due to expire in the period 2011-2012.
- 68% of the gross debt as of 31 December 2010 is in Euros.
- 44% of gross debts as of 31 December were variable rate debts.
- As of 31 December 2010 the Gearing (ratio between Debt and Equity) for Pirelli was 22%, one of the lowest in the international Tyre sector.
- As of 10 February 2011 Pirelli & C. S.p.A. issued a five-year bond for € 500 million with international investment institutions with the following characteristics. The bond is has a minimum purchase value of € 100,000 (with increases in multiples of € 1000) and a coupon rate of 5.125%.
- It is listed on the Luxembourg Stock Exchange (www.bourse.lu); reference code (ISIN): XS0592703382.
- As of 31 December 2010 Pirelli has a revolving, five-year credit line of € 1.2 billion. This loan was underwritten equally by a pool of 12 banks: Bank of America-Merrill Lynch, Barclays, BNP Paribas, Commerzbank, HSBC, Intesa SanPaolo, Mediobanca, Mizuho, Société Générale, The Bank of Tokyo-Mitsubishi, The Royal Bank of Scotland, UniCredit.