Strategy and targets by geographical area
Pirelli strategy in Europe is to focus on Premium which will make up 80% of car revenues and 79% of Moto revenues in 2015.
The business mix will shift in favour of the Consumer segment, which will contribute 90% of revenues compared with 85% now, compared with a decrease of the Industrial segment from 15% to 10%.
All the businesses (Car, Truck and Moto) will benefit from the increase of production in factories with more favourable industrial costs. The new high technology plants will be totally dedicated to the production of 'special' tyres (more than 18 inches) for Premium cars:
- Car segment will direct distribution and sales always more towards Premium excellence;
- the Truck segment will see an improvement in cost structure and the launch of new products;
- the Moto segment will maintain leadership in Premium with a more competitive cost base.
In Europe, Pirelli expects revenues to rise from the 2.2 billion Euros estimated for the end of 2011 to 2.6 billion Euros in 2014, with an average annual growth of 5.5%.
The EBIT margin is expected to grow from a low teen to a high teen level. If EBIT in Europe in 2011 is 100, it is expected to grow to 175 in 2014.