Pirelli to invest $2.7Bil on premium products, marketing

Article by Christian A., on November 7, 2010

In an effort to boost margins, Pirelli & C SpA will invest 1.9 billion euros ($2.7 billion) over the next five years on premium products and on marketing.

In the 2011-2013 industrial plan of Pirelli (Europe's third-largest tire company), it will target an earnings before interest and tax (EBIT) margin of 10.5% to 11.5%, up from the 7.5% predicted in 2010, and above analyst expectations for 8.2% to 9.4%.

Chairman Marco Tronchetti Provera said that the company will be able to reach this result (EBIT margin) primarily by focusing further on the premium segment, which is expanding quicker than the market, and on the replacement segment.

Pirelli aims to develop in Asia-Pacific, consolidate in Latin America, and enter new opportunities in mature markets in its preferred product niches. Pirelli said that it will set up a new plant in Mexico to serve the North America free trade area (NAFTA). For this endeavor, Pirelli has an initial investment of $210 million.

Analysts anticipated investment over the three-year industrial plan of 830 million to 1.05 billion euros. For this three-year plan, annual revenues are targeted to increase by 8% a year. [via autonews - sub. required]

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Cadillac’s CT6 full-size prestige-luxury sedan is still somewhat new. It has been offered to the global auto market for two model years – 2016 and 2017. But for those who...
by - February 19, 2017
In many industries, it is the rivalries that make things exciting. In basketball for example, there is the well-known rivalry between the Los Angeles Lakers against the Boston Celtics. For...
by - February 19, 2017
Now on sale in several major markets around the world including Europe, the BMW 5 Series (G30) heralds the arrival of the new seventh generation and represents a whole new...
by - February 19, 2017
Just recently, it was speculated that a new Porsche Cayman GT4 RS is coming. There is no official confirmation yet from the German sports car maker, but the arrival of...
by - February 18, 2017
Will there be a BMW M4 CS? Apparently, there is a Club Sport version of the BMWM4 after it was sighted in California doing a shoot for a new commercial...
by - February 18, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries