Efficiency program

A continuous search for efficiencies is one of the elements making Pirelli an increasingly profitable company.

Between 2010 and 2013, Pirelli profitability almost doubled, also due to a cost reduction amounting to 322 €/mln.

According to the Plan, further efficiencies of approximately 350 €/mln are to be achieved by 2017, equal to approximately one percentage point of revenues every year.

Of these:

  • approximately 320 €/mln will come from efficiencies in industrial and product activities (56% from materials, 30% from labour cost, 8% from cost control and 6% from production picking up in countries with low industrial costs) and
  • 30 €/mln will come from SG&A, including projects for the optimisation of the sales structure and for central and regional overhead cost reduction

Last revised: 19 Dec 2013