23
February
2001
|
00:00
Europe/Amsterdam

Disclosures on FY2000 results

Milan, February 23, 2001 - During a meeting with some institutional investors that will take place today in London, Pirelli SpA will make the following important disclosures.

Concerning the Group's consolidated financial statements, which are still preliminary and unaudited, for the year ended December 31, 2000, Pirelli SpA specifies that consolidated sales revenues which amount to approx. 7,460 million (showing an increase of 15% compared to the previous year) are so composed:

  • Energy Cables and Systems: approx. 3,160 million (+23% compared to the previous year)

  • Telecom Cables and Systems: approx. 1,375 million (+24% compared to the previous year)

  • Tyre Sector: approx. 2,870 million (+12% compared to the previous year).

Concerning the investments aimed at strengthening Pirelli's strategic and competitive positioning on the international key markets in its core businesses, Pirelli SpA declares that:

  • In the fiscal year ended December 31, 2000, Pirelli SpA decided to accelerate the ongoing reorganisation plan, assigning 432 million to optimise productive efficiency in both Cables and Systems and Tyre Sectors.

  • In the year 2001 the strengthening plan will be carried out with an envisaged global investment of approx. 850 million, so distributed:

  • approx. 400 million have been earmarked for the telecommunications area, mainly to establish the new Pirelli Optical Labs and to increase optical fiber production capacity;

  • approx. 120 million have been earmarked for the Energy Cables and Systems Sector, mainly for the technical upgrade of the production plants and for the industrialization of the new high voltage " Air Bag" cable;

  • approx. 330 million have been earmarked for the Tyre Sector, of which 150 million to establish new production sites using the MIRS technology (Modular Integrated Robotized System), which will revolutionize the tyre production process and further enhance Pirelli's leadership in the high performance segment .

Pirelli SpA confirms that the full disclosure of 2000 results will be released during the customary annual meeting with analysts and investors scheduled in Milan on March 21, 2001, after the already announced Board of Directors Meeting.