Sustainability Channel

Haiti: our concrete help for 4,000 children

Four thousand Haitian children will be able to return to school thanks to Pirelli and all the Group’s employees who took part in the ‘My Time for Haiti’ solidarity campaign.

Launched last March in all Pirelli premises throughout the world, the initiative raised employees’voluntary contributions between March and April and an amount equal to the double of the raised funds added by the company.

Among the initiatives promoted by Global Compact, the world forum of the United Nations to which businesses and organisations throughout the planet belong to contribute to the construction of a ‘more inclusive and sustainable global economy’, Pirelli has chosen to finance a project of the UNHCR (United Nations High Commission for Refugees), which has been on the island of Haiti since the week following the earthquake of 12 January.

So Pirelli will sustain the reconstruction of three schools – two in the city of Belladère (Ecole Atenoir Furmin and Ecole  Congreganiste Marie Jeanne, filles de Marie and one in Anse-à-Pitre (Anse-à-Pitre Liceum), making available new classrooms, toilet facilities and all the scholastic materials necessary to ensure the 4,000 children will be able to study in a safe and comfortable environment.

Exclusively financed by Pirelli and its employees, the project is already under way. Reconstruction work has begun at the three schools and is being constantly monitored by the UNHCR; it will be completed by 31 December 2010.

In the coming months, updates on the progress of the work will be circulated to all Pirelli employees via the Intranet, the company press, notice boards and the Sustainability Channel on the web.

First half operating results

THE BOARD OF DIRECTORS OF PIRELLI & C. SPA APPROVES FINANCIAL STATEMENTS AS OF 30

JUNE 2010:

• FIRST HALF OPERATING RESULTS SIGNIFICANTLY IMPROVED OVER THE SAME PERIOD OF 2009

• IN THE SECOND QUARTER PIRELLI TYRE REPORTS RECORD QUARTERLY OPERATING PROFIT 

• 2010 TARGETS OF PIRELLI GROUP AND PIRELLI TYRE RAISED AGAIN:

PIRELLI GROUP: 2010 REVENUE TARGET IMPROVED (EXCLUDING PIRELLI RE) TO 4.8-4.9 BILLION EUROS, COMPARED WITH  4.6-4.7 BILLION EUROS ESTIMATED IN MAY, WITH EBIT OF ABOUT 7% (IN MAY TARGET WAS AT LEAST 6.5%); INVESTMENTS  RISING TO MORE THAN 350 MILLION EUROS FROM MORE THAN 300 MILLION EUROS, WITH CONFIRMATION OF THE TARGET FOR A NET FINANCIAL POSITION OF – 700 MILLION EUROS 

PIRELLI TYRE: 2010 REVENUE TARGET RAISED, REVENUES EXPECTED TO RISE ORGANICALLY UP TO 15%, COMPARED WITH A TARGET OF MORE THAN 10% ORGANIC GROWTH ESTIMATED IN MAY; EBIT IN ABSOLUTE VALUE EQUAL TO AT LEAST 360 MILLION EUROS COMPARED WITH 320- 330 MILLION EUROS ESTIMATED IN MAY

• BOND ISSUE APPROVED, TO TAKE PLACE WITHIN 12 MONTHS, POSSIBLY IN MORE THAN ONE INSTALLMENT, OF UP TO 800 MILLION EUROS TO OPTIMIZE THE DEBT STRUCTURE 

• CARLO PURI NEGRI RESIGNS. VITTORIO MALACALZA COOPTED TO THE BOARD OF DIRECTORS 

PIRELLI & C. GROUP

• REVENUES: +19.8% TO 2,426.5 MILLION EUROS (2,026.2 MILLION EUROS AS OF 30 JUNE 2009)

• EBIT: +62.8% TO 193.4 MILLION EUROS (118.8 MILLION EUROS AS OF 30 JUNE 2009)

• NET INCOME OF CONTINUING OPERATIONS 80.8 MILLION EUROS, MORE THAN DOUBLE COMPARED WITH 30.3 MILLION EUROS IN THE FIRST HALF OF 2009 

• TOTAL CONSOLIDATED NET RESULT NEGATIVE FOR 175.6 MILLION EUROS DUE TO ACCOUNTING EFFECT OF THE SEPARATION OF PIRELLI RE (NEGATIVE FOR 256.4 MILLION EUROS)

• OPERATING CASH FLOW POSITIVE FOR 55.6 MILLION EUROS (-18.5 MILLION EUROS IN THE FIRST HALF OF 2009); INVESTMENTS UP TO 135.5 MILLION EUROS (65.4 MILLION EUROS IN THE FIRST HALF OF 2009); NET FINANCIAL POSITION NEGATIVE FOR 696.9 MILLION EUROS (- 528.8 MILLION EUROS AS OF 31 DECEMBER 2009)

PIRELLI TYRE

• REVENUES: +21.4% TO 2,325.3 MILLION EUROS (1,915.9 MILLION EUROS IN THE FIRST HALF OF 2009); OPERATING INCOME: +59% TO 217.3 MILLION EUROS (136.8 MILLION EUROS IN THE FIRST HALF OF 2009), WITH EBIT MARGIN RISING TO 9.3% FROM 7.1%

• REVENUES IN THE SECOND QUARTER: +22.9% TO 1,215.3 MILLION EUROS (989.0 MILLION EUROS IN THE SECOND QUARTER OF 2009); OPERATING INCOME: +54% TO 121.8 MILLION EUROS (79.3 MILLION EUROS IN THE SECOND QUARTER OF 2009), WITH EBIT MARGIN RISING TO 10% FROM 8%

Maintenance at the heart of safety

Pirelli has joined the Safe and Healthy Working Environment campaign of the European Agency for Health and Safety at Work (EU-OSHA). The new 2010-2011 campaign, launched on 28 April by the European Commissioner for Work, Social Policies and Integration László Andor, centres on the theme of Safe Maintenance. The objective is to reduce the number of accidents at the place of work linked to maintenance practices.

The campaign envisages conferences, seminars, workshops and training sessions for the workers and all stakeholders involved in the work of maintenance, especially in the sectors in which the health and safety of the workers is most at risk, such as building, agriculture and chemistry. As well as the events that will take place throughout Europe over the next 18 months, in particular in October during the European Week for Safety and Health at Work, free informative printed and digital information will be distributed on the subjects of maintenance and safety.

Among the activities that Pirelli will promote is the organisation of an HSE Pirelli International meeting at one of the premises at which an EU-OSHA delegation will participate, and the external diffusion of good maintenance practices.

“We estimate that 20% of all accidents at work in Europe are connected with the practice of maintenance, and in some sectors half of them take place due to inadequate maintenance”, said Jukka Takala, director of the European Agency for Health and Safety at Work. “That is why it is fundamental that maintenance is carried out correctly, especially if workers’ health and security are at stake”.

This is the second partnership for Pirelli after that of last year centred on the Evaluation of Risk, which was proposed to promote a participatory approach to the evaluation of risks based on consultation and the participation of all people present at the place of work.

With over 30 countries involved and a volume of about four million items of informative material distributed in all the official languages of the European Union, over time the European campaign has become one of the most extensive annual awareness campaigns.

More details concerning the campaign and the commitments made by Pirelli can be found on the European Agency’s site in the appropriate section:
http://osha.europa.eu/en/campaigns/hw2010