Sustainability Channel

Competitiveness around the World

‘Pirelli World’ is back after the summer break with a section dedicated to Formula 1, which tells us all we need to know about Pirelli’s return to the pinnacle of open-wheel racing: the terms of the agreement Pirelli has signed to provide tyres to Formula 1 for the period 2011-2013; the challenges the company will have to face as told by Maurizio Baiocchi, R&D Director for Pirelli Tyre & Parts; the motorsport tyre factory in Izmit, Turkey; and a photo reportage of Pirelli’s victories in four-wheel motorsports since 1913, by Carlo Furgeri (‘Una Storia di Successo’). 

Pirelli Tyre. Both revenues and investment are on the rise. ‘Pirelli World’ reports on the group’s strategies for success in the global marketplace.

Horacio Pagani visits the University of Milan. On the eve of the new course record at the Nürburgring set by Pagani Zonda R on Pirelli P Zero Slick tyres, ‘Pirelli World’ has asked Horacio Pagani, founder and president of Pagani Automobili (a Pirelli partner since 2005), to talk about this prestigious car manufacturer and the secret to its success.

Pirelli Manufacturing System (PMS). The outcome of the ‘Managing to Lea(r)n’ project, which Pirelli launched in 2010 with the help of the SDA Bocconi School of Business, Milan. The project seeks to insert lean procedures and tools into the production process and has already seen the participation of 130 employees from all of the group’s tyre facilities. 

In the latest issue, ‘Pirelli World’ goes to Egypt to tell the story of more than ten years of growth with Karim Gaddas, CEO of Pirelli Egypt, in conjunction with the inauguration of the new area of the Alexandria truck facilities.

The Pirelli Foundation now operational. Established with the goal of developing and promoting Pirelli’s history and entrepreneurial culture, the Foundation publishes periodicals, photos, video, sketches and other mementos that depict the 138 years of the company’s history and culture. ‘Pirelli World’ gives us a taste of this immense heritage.

All this and more in the latest issue of  ‘Pirelli World’

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%

‘Millions of smiles’ from InterCampus Romania

With the ‘Millions of Smiles’ tournament, the second edition of the InterCampus Romania series came to an end at Slatina recently. The special project was launched in July 2008 in collaboration with F.C. Internazionale Milano, Pirelli and Comunità Nuova.

For three days, over 250 children played in football matches that took place on pitch two of the 1^st May Stadium, plus recreational activities organised in parallel with them. Fun was assured for the smallest children, who enjoyed karaoke competitions, a puppet theatre, cartoons, clowns and face paint.

‘Millions of Smiles’, made possible by the work of volunteers from various Italian associations, the trainers of F.C. Internazio nale Milano, representatives of Comunità Nuova of Milan, the William Tyrell Foundation of Slatina and employees of Pirelli Tyres Romania, is the event with which InterCampus Romania celebrated a year of sports-recreational activities organised for more than 80 children from various social environments. For more than two years, the children have learnt to work as a team and integrate themselves into an organisational system through football, as well as gaining experience in social values like collaboration, friendship, loyalty and other important qualities.

“The ‘Millions of Smiles’ tournament is the concluding event of the second season, during which over 80 children have been involved in football and relating to each other”, said Luca de Vecchi, a Comunità Nuova representative. “To see their high spirits, the will to play together, to get to know each other without prejudice, makes us believe that the substantial objective we set ourselves with Pirelli and InterCampus of integration through sport is also possible in Slatina”.

“The InterCampus staff has experienced these three days with great satisfaction, establishing that not only the children have made tremendous improvements on the pitch in this sports season, the greatest pleasure was to see how much they enjoyed themselves, thanks also to the activity of animation”, declared Annalisa Novembre for InterCampus. “We would like to thank Pirelli, which has supported this event, the NIP volunteers and Comunità Nuova, Bambini in Romania and the William Tyrell Foundation, who allowed the hundreds of children to enjoy a unique experience and give us thousands of smiles”.

A spokesperson for the volunteers of the Bambini in Romania association said, “For us, the importance of the event was the collaboration between the various Italian and Romanian associations more than anything else, having the mutual objective of creating a joint moment of festivity and integration in the Slatina area. We have seen great potential in the event, which we hope can be exploited and increased in the years to come”.

Fourteen teams from sports clubs in the Olt region and InterCampus competed in this year’s football championship in the various age categories for children born in 1997-1998; 1999; 2000-2001.