Newsroom Pirelli

Agreement for international health sector cooperation with Minister for Equal Opportunity and Lombardy Regional Authority.

Fri, 10 Dec 2010 13:30:22 +0100

Continuing the programme of professional training launched at the Romanian hospital in 2008 with the participation of over 120 doctors and nurses. New activities in Radiology, Burns Therapy and Gynecology. Pirelli’s contribution approximately one million euros since launch. The Minister for Equal Opportunity, the Regional Authority of Lombardy and Pirelli today signed an agreement to expand and renew to 2013 the international health sector cooperation, launched in 2008, between Milan’s Niguarda Hospital Ca’ Granda and the Slatina Hospital in Romania, with the aim of supporting the professional training of the medical and nursing staff through a training course coordinated by the Milan hospital medical structure. The new ‘International Health Sector Cooperation’ project, under the patronage of the Ministry for Equal Opportunity, was signed today at Pirelli’s headquarters by Mara Carfagna, Minister for Equal Opportunity, Roberto Formigoni, President of the Regional Authority of Lombardy, and Marco Tronchetti Provera, Chairman of Pirelli, with the participation of the Consul General of Romania in Milan, Tiberiu Dinustrong and Pasquale Cannatelli, Director General of the Niguarda Ca’ Granda Hospital.The new professional training programme will involve, over the next three years, the Rumanian hospital’s medical and nursing staff in theoretical and practical courses in the areas of Radiology and Burns Therapy, as well as in-depth study in themes related to Emergency Treatments and Emergency Medicine. Particular attention will also be given to training in Gynecology, in response to the community’s pressing need for preventative treatments for female sicknesses given the great frequency of gynecological pathologies. As with the previous training programme – launched in 2008 and with the participation of over 120 doctors and nurses from the Rumanian hospital for Emergency Medicine, Surgery and Intensive Therapy – a number of senior medical staff from Niguarda will go to Slatina to oversee the launch of the new technologies and procedures for the specialties covered by the agreement, and doctors from the Rumanian hospital will attend the theoretical and practical courses at the hospital in Milan. The goal is to develop specific health technologies of excellence based on comparison and learning of new approaches based on modern scientific medical protocols. Over the three year period, Pirelli will contribute approximately 400,000 euros a year, which will bring the total commitment to approximately one million euros from the launch of the project. The agreement is part of the social initiatives that Pirelli conducts in support of local communities wherever it has production facilities. In Slatina, in particular, Pirelli has been active since 2005 and today has an industrial facility for the production of steelcord and high-performance tyres that employs approximately 2,000 workers. With regard to Gynecology, the new project also involves activities aimed a Pirelli employees in particular, these include information campaigns and monitoring for the prevention of female tumors. PDF Version (153KB)

Pirelli signs new revolving credit line worth 1.2 billion euros with maturity in 2015

Tue, 30 Nov 2010 14:29:39 +0100

Replaces existing lines of credit and aligns timing to new industrial plan Milan, 30 November 2010 – Pirelli today signed a new revolving line of credit for 1.2 billion euros with a duration of five years which will replace existing lines of credit worth a total of 1.475 billion euros, launched in 2005 and 2007 with maturities in 2011 and 2012, which as a consequence will be cancelled in advance. The 2015 maturity is aligned to the timing of Pirelli’s recently presented industrial plan and underwriting this new contract is one of the actions aimed at optimizing debt structure by lengthening average duration and diversifying sources of funding. The financing contract was underwritten with 12 primary national and international institutions: Bank of America-Merrill Lynch, Barclays, BNP Paribas, Commerzbank, HSBC, Intesa Sanpaolo, Mediobanca, Mizuho, Société Générale, The Bank of Tokyo-Mitsubishi, The Royal Bank of Scotland and UniCredit in equal shares. Banca IMI and BNP Paribas acted as Global Co-ordinators for the operation. Banca IMI was the Facility Agent for the operation. The financing, which is floating rate, will have an initial interest rate of Euribor plus 110 basis points. PDF Version (19KB)

Presenting in Moscow the 2011 Calendar, "MYTHOLOGY", created by Karl Lagerfeld

Tue, 30 Nov 2010 10:00:41 +0100

Moscow, 30 November 2010 – Today in Moscow, the 2011 Pirelli Calendar, now it its 38th edition, was presented to the world’s press and to other guests and collectors from around the world. The event was held at the prestigious Stanislavsky and Nemirovich-Danchenko theatre, which has, over the course of more than 90 years, been the site of operas and ballets that have become a part of the nation’s artistic heritage. After Patrick Demarchelier immortalised China in the 2008 edition, Peter Beard drew a portrait of Botswana in 2009, and Terry Richardson covered Brazil in 2010, “The Cal 2011” features the creative genius of the multi-faceted artist Karl Lagerfeld, whose sense for art and aesthetics is renowned throughout the world. From his Paris studio, Lagerfeld created “Mythology”, a calendar that reflects one of his deepest passions, that of Greek and Roman mythology, tales of the origins of humanity told through the adventures of gods and goddesses, heroes and heroines. On a voyage back through time transported by the universal language of photography, “Mythology” takes us to the roots of classical civilisation and takes the Pirelli Calendar back to the Old World, where nearly 140 years ago a company was born that was to become a multinational organisation with operations in over 160 nations around the world. The 36 photos that make up the 2011 Calendar show 24 different subjects, including gods, heroes and myths. With his keen eye, Lagerfeld has ‘sculpted’ these photos both in terms of their aesthetic rigour and for the recurring references to the art of sculpture and its classical tenets. All of the photos are in black and white, which lends character to the images, exalts the beauty of the figures represented in sharp chromatic contrast, and gives them a certain three-dimensionality through the careful use of light. “Actresses and models bring these new heroes to life and depict a new concept of the beautiful,” said Karl Lagerfeld, who, within the 2011 Pirelli Calendar, has offered up an idyllic, immortal representation of beauty. Beauty, youth, the veneration of form, and desire depict this new concept of beauty and embody the modernity in mythology. There are 21 protagonists of this edition: 15 female models, 5 male models, and the American actress Julianne Moore. The female models include: Italian models Bianca Balti and Elisa Sednaoui; Danish model Freja Beha Erichsen; Brazilian model Isabeli Fontana (also in the 2005 Calendar by Patrick Demarchelier and in the 2009 edition by Peter Beard); Polish models Magdalena Frackowiak and Anja Rubik; Australian model Abbey Lee Kershaw (who debuted in the 2010 Calendar by Terry Richardson); Indian model Lakshmi Menon; American models Heidi Mount and Erin Wasson (who debuted in the 2005 Calendar by Patrick Demarchelier); Russian model Natasha Poly; Dutch model Lara Stone and Canadian model Daria Werbowy (both of whom Peter Beard had also chosen for the 2009 Calendar); Austrian model Iris Strubegger; and Jamaican model Jeneil Williams. The 5 male models are Baptiste Giabiconi and Sébastien Jondeau (French), Brad Kroenig and Garret Neff (American), and Jake Davis (British). PDF Full Version (179KB)

Sale of Pirelli Broadband Solutions to ADB finalized

Mon, 29 Nov 2010 18:22:54 +0100

Milan, 29 November 2010 - In execution of the agreements announced to the market on October 21st, 2010, the sale by Pirelli of the entire capital of Pirelli Broadband Solutions SpA (PBS) to Advanced Digital Broadcast Group (ADB) was today finalized. The transaction is now completed and closed. The amount paid by ADB consists of about 25,1 million euros in cash and 400,000 listed ADB shares, equal to approximately 7.2% of its capital. With regard to these shares, Pirelli & C. has undertaken a lock-up commitment for the first two months following the closing, as well as a put option for Pirelli & C. and a call option for ADB, which can be exercised within two years. PDF Version (27KB)

Pirelli sells Broadband Solutions to ADB for approximately 30 million euros

Pirelli, Russian Technologies and Sibur Holding sign agreement to develop joint activities in the tyre sector in Russia

Fri, 26 Nov 2010 14:53:48 +0100

Pirelli, Russian Technologies and Sibur Holding today in Moscow signed a memorandum of understanding (MOU) to define a series of agreements for the development in Russia of joint activities in the tyre and steelcord sectors, as well as in the supply and high-technology production of synthetic rubber derivatives. The closing is expected by June 2011. With regard to the tyre sector, in particular, the agreement lays the foundation for the joint launch of a process of rationalization and reorganization of the tyre activities of Sibur Holding, one of Russia’s major operators in the petro-chemical sector. The agreements call for a process of reorganization aimed at selecting the assets of Sibur Russian Tyres that will be conferred to two joint ventures constituted by Pirelli and Russian Technologies (JV1, JV2). This process will be based on the guidelines and business plan agreed by the three partners. The first joint venture will receive the assets of Sibur Russian Tyres that are convertible to Pirelli standards in the car, agro radial and truck all steel sectors. These assets, pending the finalization of the transactions, will be managed by Pirelli from the beginning on the basis of a manufacturing and technology agreement. The second joint venture, instead, will receive the assets relevant to the production of car tyres for the original equipment sector, aimed at satisfying increasing demand in the Russian market, as well as those for the production of truck and conventional agro tyres. JV2 will also hold a significant stake in Sibur Russian Tyres. Further, Pirelli will acquire a direct stake of 10% in Sibur Russian Tyres in exchange for its technical and managerial input. To this end, Pirelli will provide, under license, its technologies and production processes and participate in the technological upgrade of the plants, as well as providing its knowhow in the areas of logistics, quality control and organization of activities. For Sibur, its tyre business will benefit from Pirelli’s cutting edge technology and with the Italian group’s industrial support Sibur’s tyre also expects a significant improvement in its business results. The new technological link between the two groups in synthetic rubber will also facilitate the introduction of new kinds of synthetic rubber to improve tyre performance. Further, the deal will help create synergies between the automobile, tyre and synthetic rubber sectors in Russia, improve the offering to customers and enhance the international competitiveness of the Russian tyre and Auto industry. The partnership between Russian Technologies, Sibur and Pirelli will also support the development of the Russian tyre and Auto industries and, by attracting investment to the tyre sector, will enable the creation of modern high-technology and high quality products for both industries. As a result of the agreement, one of the world’s leading tyre producers – Pirelli – will locate its production facilities in the Russian Federation. Today’s memorandum foresees the joint development of technologies for the production of synthetic rubber derivatives to be used in the production of top-of-the-range car tyres, an area where synthetic rubber, rather than natural, is mostly used. As well, within the scope of the MOU, Pirelli and Russian Technologies will build a factory for the production of steelcord, the metallic ribbon used in radial tyres, and giant tyres in Samara, in the special economic zone of Togliatti. In detail, these agreements state: 1. that, in line with plans already announced to establish a plant in the special economic zone of Togliatti, Pirelli and Russian Technologies, through a 50-50 joint venture (JV1), will build a plant for the production of steelcord in Samara, as well as the production of giant tyres. 2. that Sibur Holding will undertake to cede to JV1, the 50-50 joint venture between Pirelli and Russian Technologies, the assets convertible to Pirelli standards in the car, radial agro and truck all steel sectors, chosen as a result of the rationalization and reorganization process jointly developed by the three partners. JV1 will maintain a 90% stake in the assets and Sibur Holding will hold the remaining 10%. Pending the finalization of the transactions, and on the basis of a manufacturing and technology agreement, Pirelli will manage from the start these assets, which will enable the achievement of a production capacity including 3 million car tyres, predominantly ‘winter’, by the end of 2011. 3. that Sibur Holding will cede 40.1% of Sibur Russian Tyres, a company belonging to the Russian holding containing other tyre activities, to a second 50-50 joint venture between Pirelli and Russian Technologies (JV2). JV2 will receive the assets relevant to the production of car tyres for the original equipment sector, as well as those for the production of truck and conventional agro tyres. The value of the transaction will be determined on the basis of a valuation being carried out by an adviser chosen by the partners. Pirelli will also directly acquire 10% of Sibur Russian Tyres in exchange for its managerial and technical input. Pirelli will therefore provide, under license, its technology and production processes, participate in the plants’ technological upgrade, and provide its know-how in the areas of logistics, quality control and the organization of activities. Once these transactions and the reorganization of the activities of Sibur Russian Tyres by Pirelli, Russian Technologies and Sibur Holding are completed, Sibur Holding will have a 49.9% stake in Sibur Russian Tyres compared with its present 100%. The agreement, in fact, requires the reorganization of Sibur Russian Tyres’ activities based on the guidelines and business plan agreed by the partners. This process, as mentioned earlier, will identify the assets and activities relevant to JV1’s business and those that will be kept and developed within the perimeter of JV2; 4. that Pirelli and Sibur Holding define agreements in the area of the production of synthetic rubber that call for Sibur Holding to act as long-term supplier to Pirelli and the two joint ventures (JV1, JV2), as well as for the joint development of new high-technology products derived from synthetic rubber to be used in the production of top-of-the-range car tyres; 5. that the partnership may offer a further opportunity for development and consolidation through the possible acquisition of or merger with Nizhnekamskshina, a tyre producer controlled by Tatneft. Sergey Chemezov, Director General of the Russian Technologies State Corporation, said: “In order to be more competitive it is necessary to cooperate with companies which apply advanced technologies and solutions. It is the basis of our collaboration with Pirelli. We are determined to keep to the same rules in choosing our partners from now on.” Alexander Dyukov, Chairman of the Board of Directors of SIBUR Holding OJSC, said : “Partnership with one of the world’s leading tyre producers and a Russian company that represents the automotive industry opens the challenge for SIBUR`s tyre business. Following possible consolidation of the Russian tyre sector using advanced western technologies will increase marketability of national economics and help SIBUR to increase capitalization of its investment in this segment.” Marco Tronchetti Provera, Pirelli Chairman, said: “The agreement signed today is a significant acceleration of our push into the Russian market compared with the initial plan, with a financial commitment substantially in line with that forecast in our 2011-2015 financial plan. Russia is a key market for our strategy of growth in all business segments, consumer and industrial. The partnership announced today with two such important groups as Russian Technologies and Sibur Holding will allow us to also participate in the rationalization and consolidation of the Russian tyre market and to take advantage of possible opportunities linked to the acquisition of plants already equipped with a good level of technology.” About SIBUR SIBUR is the leader of petrochemistry in Russia and Eastern Europe. The Company operates across the entire petrochemical process chain from gas processing to the production of monomers and plastics, mineral fertilizers, tyres and industrial rubber items, as well as the processing of plastics.SIBUR produces over 2000 different brands of products. The Company processes more than half of APG and produces 23% of propylene, 23% of polypropylene, 17% of polyethylene, from 30 to 49% of different rubbers, 34% of tires, 16% of nitrogen fertilizers, and considerable part of other petrochemical products in Russian market.SIBUR incorporates plants that employ over 50 000 people in 20 regions of Russia. The Company is managed along product-division lines – Hydrocarbon Feedstock, Synthetic Rubbers, Plastics and Organic Synthesis Products, Mineral Fertilisers and Tyres.Gazprombank Group is the principle shareholder of SIBUR Holding JSC, with control of more than 95 % of the company shares. SIBUR Holding JSC is managed by SIBUR LLC that acts as the holding company’s sole executive body.Over recent years, the company has consistently delivered healthy financial and operational results. In 2009, SIBUR Group plants processed 16,8 billion cu m of APG and produced 15 million tons of petrochemicals and 14,8 billion cu m of LPG. About Russian Technologies The Russian Tecnologies State Corporation is designed to assist Russian organizations-developers and manufacturers of high technology industrial products in their development, production and export by providing support in domestic and foreign markets and attracting investments to different industries including defense industrial complex. Its main functions are assistance to organizations in various sectors of industry including defense industrial complex, in developing and producing high technology industrial products; Promotion and sales in the domestic and foreign markets of high-technology industrial products, associated by-products and intellectual property; Participation in the implementation of the state policy in the sphere of military-technical cooperation of the Russian Federation with foreign states and state armaments programme; Attractingn of investments to different sectors of industry including defence industrial complex, for the purpose of development and production of competitive high-technology products including military equipment; Advertising and exhibition activities for the benefit of different sectors of industry including defence industrial complex, participation in the organisation and management of exhibitions (demonstrations) of civil, military and dual-purpose products in the territory of the Russian Federation and abroad; Assistance to organisations in various sectors of industry including defence industrial complex, in carrying out applied research projects in prospective areas of science and technology, and putting into production advanced technologies with the purpose of enhancing the level of domestic developments of high technology industrial products and reducing their time and costs; Assistance to the organization acting as a state intermediary in foreign trade operations related to military-purpose products; Performance of other functions in compliance with federal laws and decrees of the President of the Russian Federation. About Pirelli The fifth largest tyre maker in the world by sales, Pirelli is leader in the high-end segments with high technological content. Founded in 1872, there are now 19 Pirelli Tyre factories throughout the world, on four continents, operating in more than 160 countries. Pirelli, listed on Milan Stock Exchange, is distinguished by its long industrial tradition, which has always combined a capacity for innovation with product quality and brand strength. A strength which, since 2002, has also been based on the fashion and high-tech project of PZero, the value of which has been further recognized by the Formula 1, for which Pirelli Tyre is the exclusive supplier for the three-year term 2011-2013. In line with its ‘green performance' strategy, Pirelli, which has always focused on research and development, operates with ever increasing attention to products and services of high quality and technology and low environmental impact. PDF Version (KB)

Pirelli and Russian Technologies sign agreement to extend collaboration

Pirelli Win contract for five year British Superbike Control Tyre Supply

Fri, 26 Nov 2010 12:32:35 +0100

Pirelli will once again be the tyre of choice for the British Superbike (BSB) and Supersport Championships after winning a competitive five-year supply tender for this prestigious motorsport series (subject to contract). The race organisers MSV look to retain the consistency and fairness that this control supply relationship has given the series. The British Superbike deal concludes an exciting time in World Motorsport for Pirelli after recently winning the exclusive Formula One sole tyre supply tender for the 2011-3 seasons and extending its relationship with the World Superbike series to 2012 (which has run since 2004.) Having been the control tyre supplier for the last three years, The Italian tyre brand will again be supplied to all teams for the 2011-5 race seasons, reflecting their impressive support for the series in terms of performance, consistency, logistics and marketing. With the series looking as strong as ever it keeps the link between the BSB series and the similarly Pirelli shod World Superbike Championship with riders moving between these two well supported and followed race series. An unprecedented number of top ex-BSB riders now pack the upper echelons of World Superbike and similarly top teams and riders appear as ‘wildcards' at certain BSB events, all made possible by the easy transition with similar tyres. After winning the first tender for the BSB Championship, Pirelli were able to respond at short notice and put the necessary structure together to ensure the consistent supply of high performance tyres on their experience in World Superbike Championship. Giovanni Tolasi, Director Pirelli Moto UK commented, "We are honoured to be associated with the British Superbike Championship for the next five years, it is a great series and the UK is a very important market for Pirelli. The series is strong and the battle this year went all the way to the last race, we like to think that we have some part in that due to the Pirelli tyre supply system giving fair and equal tyres to all riders and teams" Stuart Higgs, British Superbike Series Director, added, "There was much interest in the tyre contract for the coming seasons which is testament to the strength of the series. After much deliberation we are pleased to announce the continuation of our agreement with Pirelli as control tyre suppliers. Pirelli have given great importance to our series and have impressed us with their logistics operation for the teams. We look forward to another five years with Pirelli as a valued partner to BSB."

2011 MCE Insurance British Superbike Championship calendar:

Apr	22-25	Brands Hatch*
Apr/May	30-2	Oulton Park*
May	13-15	Croft
May	28-30	Thruxton*
June	17-19	Knockhill
July	1-3	Snetterton 300
July	15-17	Oulton Park
Aug	5-7	Brands Hatch GP
Aug	27-29	Cadwell Park*
Sept	9-11	Donington Park
Sept	23-25	Silverstone Arena GP
Oct	7-9	Brands Hatch

* = Bank Holiday weekend

More information regarding Pirelli’s entire range of racing and road tyres can be found at www.pirelli.com

FIM Superbike & Supersport World Championships- FIM Superstock Cup 2011 updated Calendars

Wed, 24 Nov 2010 09:53:28 +0100

Pirelli concludes first official Formula One tyre test. The next private test, to fine-tune the tyres, will take place in Bahrain at the beginning of December. After then, the next official tyre test

Sat, 20 Nov 2010 18:41:08 +0100

Paul Hembery, Pirelli’s motorsport director: “We’ve passed our first test with full marks. All the teams have done plenty of laps and everyone has worked very hard. We’ve focussed on the development of the front tyre and that has given us the most satisfaction. On Monday, we begin to analyse the data collected over the last two days” Abu Dhabi (United Arab Emirates), 20 November 2010 – Each team today completed an average of 80 laps and 5500 kilometres on the Yas Marina circuit, adding to the total of 5000 kilometres run yesterday, to conclude the first official tyre test for Pirelli: the exclusive Formula One tyre supplier from next year. A total of 15 drivers were on track today: one per team apart from Force India, McLaren and Sauber, which used two drivers. As was the case yesterday the test started at 0900 and finished at 1700, with hot and dry conditions all day ranging between 23 and 28 degrees centigrade. Each car had four sets of tyres at its disposal, two medium-compound sets and two softcompound sets, with some cars using parts of their allocations that had been left over from yesterday. Pirelli’s testing programme will now continue at the start of December. The next private tests are scheduled to take place in Bahrain from 12-16 December, where Pirelli’s engineers will once more try out the various compounds in hot conditions. There will be another private test session in Europe during January, before all the teams reconvene at the beginning of February for the first official test. Paul Hembery, Pirelli’s motorsport director, commented: “It was hard work, but a very positive and educational experience for us. We know that this was only our first test, but we think that we’ve passed it with full marks. The comments from the drivers are very encouraging: they especially enjoyed the performance of our front tyre, which is an area that we have worked on considerably. This was one of our objectives, and I’m delighted that we have hit our target. Throughout these two days we’ve tried out the medium and soft compound tyres and we’ve had good results from both of them, particularly in terms of wear rate. During the two days of testing here in Abu Dhabi we’ve racked up nearly 11,000 kilometres with all the teams: that’s more than we have accumulated in three months of private testing. They have also been 11,000 very interesting kilometres, given that we were testing for the first time with the current cars, rather than the 2009-specification Toyota that we have used up to now. Furthermore the teams have begun to test different solutions specifically for 2011, giving them further development directions. We’ve now collected a huge amount of data and opinions, which we will start to analyse on Monday as we prepare for the next tests in Bahrain at the beginning of December. After then, we will have finalized our product and we can look forward to the next official test with all the teams at the start of February.” The teams were backed up throughout the tests by Pirelli's engineers and technicians. The Italian company put a dedicated engineer at the disposal of each team, in order to collect data and opinions that will be discussed with the teams and drivers. At the end of the day there was a final briefing between the teams and Pirelli to share information and focus more closely on some of the data that had been obtained. Pedro de la Rosa - one of Pirelli's drivers in private testing along with Nick Heidfeld and Romain Grosjean - was also present to support Pirelli's F1 squad. De la Rosa visited all the teams today to get the first impressions from the drivers and their individual opinions. The drivers testing today, their best times and the laps they completed are listed below: Fernando Alonso (Ferrari): 1.40.529 (105 laps) Rubens Barrichello (Williams): 1.41.294 (101 laps) Sebastien Buemi (Scuderia Toro Rosso): 1.42.145 (98 laps) Timo Glock (Virgin): 1.44.783 (83 laps) Kamui Kobayashi (Sauber): 1.42.110 (43 laps) Robert Kubica (Renault): 1.41.614 (91 laps) Vitantonio Liuzzi (Force India): 1.42.416 (47 laps) Pastor Maldonado (HRT): 1.44.768 (65 laps) Gary Paffett (McLaren): 1.41.622 (46 laps) Sergio Perez (Sauber): 1.42.777 (46 laps) Paul di Resta (Force India): 1.41.869 (35 laps) Michael Schumacher (Mercedes): 1.40.685 (74 laps) Jarno Trulli (Lotus): 1.44.521 (83 laps) Oliver Turvey (McLaren) 1.41.740 (30 laps) Sebastian Vettel (Red Bull): 1.40.825 (66 laps) Photographs are available from: www.pirelli.com/pressarea Video: Interview with Paul Hembery, Pirelli Motorsport Director: http://dl.dropbox.com/u/164685/PIRELLI/AbuDhabi_nov2010-INTW_Hembery_ENGpress2.mpeg.zip Pirelli F1 Archive: http://dl.dropbox.com/u/164685/PIRELLI/Pirelli_F1_archive.mpeg.zip Pirelli F1 Private test 2010: http://dl.dropbox.com/u/164685/PIRELLI/Pirelli_F1_private_test_2010.mpeg.zip On site contacts: Francescopaolo Tarallo +39 334 68 44 307 – francescopaolo.tarallo@pirelli.com Gloria Cagliani +39 331 18 51 703 - gloria.cagliani@pirelli.com Anthony Peacock +44 7765 896 930 - anthony@mediatica.co.uk PDF Version (53KB)

Three in a row for Easton and Pirelli in red hot paced Macau GP!

Sat, 20 Nov 2010 14:21:36 +0100

Stuart Easton took an incredible 1.5 seconds off the Macau GP lap record as he notched a third consecutive win for both himself and Pirelli. Utilising next year’s Pirelli ‘Diablo Superbike’ customer tyre rear slick, Easton eased away from Michael Rutter and set an awesome 2.23.6 lap to shatter the existing record. The Scottish ace won the event for the PBM Kawasaki World Superbike squad in his first ride for the team and enthused, “Three wins in a row and to go 1.5 seconds under the lap record was amazing. The Pirelli tyres were fantastic out there- thanks!” PBM Kawasaki World Superbike team boss Paul Bird said, “Stuart was mega today and the tyres have been fantastic all the way through the event. A big thanks to Pirelli for supplying us the winning tyre.” Easton ran a 2010 Pirelli Diablo Superbike SC2 front slick from the customer range paired with the soon to be introduced 2011 spec SC1 rear which will become a control tyre option in British Superbike next year and, crucially, be available to all racers and trackday riders. Fellow Pirelli runner Simon Andrews was looking good for a podium in only his second attempt at this unique Far Eastern event but he suffered from a lack of power in the closing stages to go fourth. Andrews used the same Pirelli Diablo Superbike SC2 front as Easton but interestingly, got good results from a Road Racing development rear tyre giving good feedback for such events as the NW200 and Isle of Man TT. Privateer Jimmy Storrar finished an impressive seventh at the event using Pirelli 17 inch slicks in contrast to the other riders’ 16.5 inch rim sizes. Other Pirelli runners of note included Cameron Donald (8th), James McBride (9th), Keith Amor (10th) and Rico Penzkofer (11th). Pirelli Racing Manager Jason Griffiths said, “The Macau GP is a huge spectacle attracting massive media attention across Asia and is closely followed back home. The event means a lot to us, so to get three out of three wins since we started this programme is fantastic. Stuart rode superbly throughout and that’s now two different teams and manufacturers he’s won for, which emphasises his class. It’s also great for us to get a debut win for our 2011 spec compound which will be available not only in BSB but to all track riders. We felt for Simon Andrews, he rode strongly today and really deserved a podium.”

Pirelli: satisfactory start to Abu Dhabi testing. The first day of testing at the Yas Marina circuit has been completed

Fri, 19 Nov 2010 16:24:15 +0100

Paul Hembery, Pirelli Motorsport Director: “We’re encouraged by the good working relationship and some promising results. Teams have appreciated the reliability and consistent performance of our new tyres. The lap times were good for everyone.” Abu Dhabi (United Arab Emirates), 19 November 2010 - Toro Rosso driver Jaime Alguersuari got Pirelli’s Formula One return underway on the opening day of testing, which took place with all 12 of the teams that compete at the pinnacle of world motorsport. The Spaniard was the first man to emerge from the pits shortly after 0900 this morning, giving the green light to the 2011 season and Pirelli’s three-year tyre supply deal. The teams faced challenging conditions during the first day of tests. In the morning the temperature was around 25 degrees centigrade, equivalent to a track temperature of 37 degrees. At 1700 all the cars returned to their garages, having completed between 70 to 80 laps each on average: the equivalent of a Grand Prix and a half. There were 13 drivers on the track today: one per team with the exception of Force India, which ran Adrian Sutil in the morning and Paul di Resta in the afternoon. Pirelli supplied the teams with four sets of tyres today, in soft and medium compounds, so that they could carry out their own pre-defined test programmes. The same quantities of Pirelli rubber will be supplied to the teams once more tomorrow, when some of the champions who missed today’s action will take to the track for the first time. Paul Hembery, Pirelli’s motorsport director, said: “We’re very pleased with this first day of testing and the excellent working relationship that has been struck up between our engineers and all the teams and drivers. We’re gathering plenty of useful information and valuable suggestions, as well as some encouraging comments. So far, I would say that everything has gone according to plan. In particular we are very pleased with the reliability and stability of our tyres as well as with the turn-in performance of the front tyre. The lap times set by all the teams have been excellent, and they have each covered a lot of ground as can be seen from the number of laps run. The teams are also making the most of these test sessions to try out different set-ups and some new ideas for 2011, which provides us with an even greater challenge and more meaningful results. I would say that we are in a strong position now to approach the first official tests in February 2011 with a good package.” The teams were backed up throughout the tests by Pirelli’s engineers and technicians. The Italian company put a dedicated engineer at the disposal of each team, in order to collect data and opinions that will be discussed with the teams and drivers. At the end of the day there was a final briefing between the teams and Pirelli to share information and focus more closely on some of the data that had been obtained. Pedro de la Rosa – one of Pirelli’s drivers in private testing along with Nick Heidfeld and Romain Grosjean – was also present to support Pirelli’s F1 squad. De la Rosa visited all the teams today to get the first impressions from the drivers and their individual opinions. The drivers present during the first day of testing were: Jaime Alguersuari (Scuderia Toro Rosso): 1.42.019 Rubens Barrichello (Williams) 1.41.425 Timo Glock (Virgin) 1.44.124 Kamui Kobayashi (Sauber): 1.40.950 Heikki Kovalainen (Lotus): 1.44.686 Robert Kubica (Renault): 1.41.032 Pastor Maldonado (HRT): 1.45.728 Felipe Massa (Ferrari): 1.40.170 Gary Paffett (McLaren): 1.40.874 Nico Rosberg (Mercedes): 1.41.778 Paul di Resta (Force India): 1.41.615 Adrian Sutil (Force India): 1.42.859 Sebastian Vettel (Red Bull): 1.40.500 Interview with Paul Hembery, Pirelli Motorsport Director: http://dl.dropbox.com/u/164685/PIRELLI/AbuDhabi_nov2010-INTW_Hembery_ENGpress.mpeg.zip Pirelli F1 Archive: http://dl.dropbox.com/u/164685/PIRELLI/Pirelli_F1_archive.mpeg.zip Pirelli F1 Private 2010: http://dl.dropbox.com/u/164685/PIRELLI/Pirelli_F1_private_test_2010.mpeg.zip Photographs are available for media to website from: www.pirelli.com/pressarea On site contacts: Francescopaolo Tarallo +39 334 68 44 307 – francescopaolo.tarallo@pirelli.com Gloria Cagliani +39 331 18 51 703 - gloria.cagliani@pirelli.com Anthony Peacock +44 7765 896 930 - anthony@mediatica.co.uk PDF Version (53KB)

Pirelli formula one tyre testing gets underway tomorrow. The 2011 season kicks off at the Abu Dhabi circuit, with Pirelli supplying tyres in a three-year agreement from 2011-2013

Thu, 18 Nov 2010 13:10:04 +0100

On Friday and Saturday, the 12 teams will try out next year’s Pirelli tyres for the first time Slick tyres in medium and soft compounds will be used, distinguished by a coloured stripe on the sidewall. Each team will have eight sets of tyres available to them for the two days of testing The test in the United Arab Emirates marks Pirelli’s return to F1 after a 19-year absence. The Italian tyre company has brought 384 tyres and 30 people to Abu Dhabi for its debut Pirelli’s Formula One team has now concluded the first phase of testing, following eight private tests and 7000 kilometres on challenging circuits all over Europe Paul Hembery, Pirelli’s motorsport director: “We come to these tests with plenty of confidence and satisfaction with our work carried out so far. The tests in Europe have given us all the data we needed at this current phase of development. Tomorrow, the second phase gets underway…” Abu Dhabi (United Arab Emirates), 18 November 2010 - The 5.5 kilometres of the Yas Marina circuit in Abu Dhabi will play host to Pirelli’s debut as Formula One’s official tyre supplier tomorrow, as the Italian company returns to the pinnacle of motorsport following a 19-year absence. The 12 teams, which have just concluded the 2010 Formula One World Championship at the Yas Marina circuit, will test Pirelli’s tyres for the first time – giving the green light to the new season and the three-year tyre supply deal with the legendary Italian firm. Two days of testing will take place tomorrow and Saturday from 0900-1700. Sunshine, light wind and ambient temperatures around 34 degrees, which translate to a track temperature of about 48 degrees, will be the order of the day throughout this weekend’s action. The first taste of the new tyres that all the teams will have comes after a programme of eight private tests that Pirelli has carried out, starting from the 19 August when the tyres took to the track for the first time. Since then, the Toyota TF109 chosen as a development car has racked up around 7000 kilometres with Nick Heidfeld, Romain Grosjean and Pedro De La Rosa at the wheel, in all sorts of weather conditions on a variety of European circuits. Pirelli’s engineers, led by motorsport director Paul Hembery, have been to Mugello, Monza, Barcelona, Valencia, Jerez and Le Castellet to try out all the different types of tyre that will be supplied to the teams next year according to FIA regulations: four slick tyres (ranging from super-soft to hard) one intermediate tyre, and one rain tyre. “We come to these tests with plenty of confidence and satisfaction with our work carried out so far,” said Hembery. “The tests in Europe have given us all the data we needed at this current phase of development. From tomorrow, the drivers and engineers from every team will give us their opinions and feedback, which are of vital importance for the second phase of testing: a challenge that we are already well-prepared for.” The Abu Dhabi tests are conducted by the teams, who have determined the programme and parameters that they would like to cover during the next two days. Both the medium compound slick and the soft compound slick will be used, distinguishable by a coloured stripe on the sidewall. Each team will run just one car. Every team will have eight sets of tyres available, four for day one and four for day two, which adds up to a total supply of 384 Pirelli tyres. During the test, the teams will be fully supported by Pirelli’s engineers and technicians. In particular, each team will have an assigned engineer throughout the test as well as being able to rely on the back-up of the entire group, which numbers 30 people in Abu Dhabi. Today, Pirelli’s engineers and technicians will meet all the teams for a general briefing, during which details of the forthcoming test programme will be discussed. At the end of each day of testing, there will also be an additional debrief between all the teams and Pirelli in order to compare information. After Abu Dhabi, Pirelli will move on to Bahrain in early December for more private testing, in preparation for the first official tests with all the teams next year, which get underway in January. The Pirelli F1 team, composed of a variety of international personnel, is based in Milan at the Pirelli Tyre Research and Development Centre. This facility is at the heart of the Pirelli Group’s tyre technology, which employs 1000 researchers based in five centres all over the world. Motorsport is the laboratory in which Pirelli has traditionally created some of the most important innovations in the tyre sector, so it is of crucial importance. Throughout 2011, Pirelli will supply 50,000 tyres to the Formula One World Championship. The tyres for the world’s premier motorsport division will be produced at Pirelli’s Izmit factory in Turkey, one of the most modern of its kind, which is dedicated to competition tyres. Pirelli’s technicians have developed machinery and production processes that are perfectly adapted to making these cutting-edge tyres. The Formula One tyre supply agreement underlines Pirelli’s commitment to motorsport, which the Italian company has been involved in since winning the epic 1907 Paris-Peking road race. Pirelli is currently engaged in some of the most important international motorsport series in the world on two wheels and four, such as GP3, WRC, the Rolex Sports Car Series in North America and the Superbike world championship. As well as these, Pirelli supports more than 70 more national and international championships. Pirelli’s last Formula One participation was the 1991 Australian Grand Prix and the last Pirelli victory was in Canada the same year, as a partner of the Benetton team. Photographs are available for media to website from: www.pirelli.com/pressarea On site contacts: Francescopaolo Tarallo +39 334 68 44 307 – francescopaolo.tarallo@pirelli.com Gloria Cagliani +39 331 18 51 703 - gloria.cagliani@pirelli.com Anthony Peacock +44 7765 896 930 - anthony@mediatica.co.uk PDF Version (56KB)

Pirelli widely praised on WRC finale

Sun, 14 Nov 2010 11:07:18 +0100

Pirelli has been widely praised after completing its three-year tenure as the official tyre supplier to the FIA World Rally Championship on Wales Rally GB today. Pirelli was awarded the exclusive agreement in 2008 and since then it has supplied a total of 27,995 tyres for use on 40 WRC events on snow, ice, asphalt and gravel, covering more than 14,000 kilometres of special stages. Under the terms of its contract with the FIA, Pirelli was challenged to focus on durability rather than outright performance when developing its PZero, Scorpion and Sottozero range of WRC tyres, albeit without using mousse inserts. It is therefore great testament to the advanced design and meticulous production processes employed by Pirelli that of those 27,995 tyres supplied, only 43 have suffered failures on the punishing terrain encountered on world championship rallies, a percentage of just 0.1536. Although Pirelli won't compete for outright victory on WRC events next season, when it begins its three-year agreement as the official tyre supplier to the FIA Formula One World Championship, the company remains fully committed to rallying and will contest several national and international series in 2011 as well as supplying tyres to the new WRC Academy, a training category for young drivers starting out in the sport's highest echelon. "We didn't have any problems, no punctures, everybody was on the same level, and the tyres were competitive," said Olivier Quesnel, the boss of the Citroën Total World Rally Team, which has won the manufacturers' title for the last three seasons with Pirelli. "The support has been really good and we regret Pirelli are not in the WRC next year." Christian Loriaux, the technical director of the rival Ford team, said: "It has been a fantastic three years and I've congratulated them so many times. They have always been very professional with a good and consistent product and provided a very good level of service. They have also been very fair in everything they do and there are a lot of very nice guys in the Pirelli team who have become friends." The completion of Pirelli's three-year involvement in the WRC coincided with an eighth victory of the season for the seven-time world champion Sébastien Loeb, who defeated Petter Solberg and Jari-Matti Latvala in a tense finish to register Pirelli's 180th victory at world championship level. Driving a factory-prepared Citroën C4 WRC, Loeb completed the 344.96-kilometre route in damp and slippery conditions, with a winning margin of 19.1s on the final event for the current generation of World Rally Cars. "When I heard that Latvala had a problem with his tyre on Friday I knew it would be because of a problem with the rim, because with the Pirelli tyre you don't have punctures," said Loeb. "It has been a very good three years with no problems at all." Matteo Braga, Pirelli's senior WRC tyre engineer, was highly satisfied after the finish of Rally GB in the Welsh capital Cardiff earlier today. "We are all very pleased with how this event has gone," said Braga. "The conditions have been difficult with rain, mud and cold temperatures all adding to the challenge facing the soft compound Pirelli Scorpion tyre but, once again, they have coped very well. We experienced one tyre failure on the event when the sidewall on a tyre on Ken Block's Ford Focus was damaged by a rock. There have also been a few occasions when wheel rims have been broken by drivers hitting rocks and other obstacles on the stages, which have resulted in the tyre losing the air, as was the case with Latvala on Friday. But, in most cases, we have been able to inflate the tyre again back in service." Pirelli's Rally Manager, Mario Isola, reflected on Pirelli's three seasons in the WRC, adding: "I'm very proud of the success we have achieved and would like to thank all the drivers, teams and the Pirelli staff, not just the people on Rally GB but the people in the rally department in Milan and the factory in Turkey. They have been a very important part of a successful experience. Our targets were to produce a tyre that had solid puncture resistance and gave good consistency and we managed this even though we only had six months to get ready." As well as counting as the final round of the 13-event World Rally Championship, Rally GB was the last event of the year for competitors in the Super 2000 and Production Car World Rally Championships, which use Pirelli tyres as standard and therefore underline the performance and efficiency of the Italian rubber on a wide range of machinery. Norway's Andreas Mikkelsen, driving a Skoda Fabia S2000, was the first S2000 runner home while the inaugural title went to Spaniard Xevi Pons in a Ford Fiesta S2000. Armindo Aráujo successfully defended his PWRC crown at the wheel of the Mitsubishi Lancer Evolution X as Pirelli Star Driver Ott Tänak claimed maximum PWRC points on his first appearance on the demanding gravel event. Tänak was one of five Pirelli Star Drivers completing their six-event programme of WRC events this season, which is part of a joint initiative between Pirelli and the FIA to help nurture the next generation of rallying talent. Fellow Star Driver Hayden Paddon took third in the PWRC standings with team-mates Nick Georgiou, Peter Horsey and Alex Raschi all reaching the finish. "It's been another very successful season for the FIA Pirelli Star Drivers and having Ott and Hayden on the podium here is great news and a great endorsement of the programme," added Isola.

Pirelli moto and sustainability in racing: reflecting upon the first fim e-power world championship

Fri, 12 Nov 2010 12:20:14 +0100

Firefighter father and son of Team Betti Moto win the championship and American architect/designer Michael Czysz continues his dream

This past September on a motorcycle built and raced by two firemen from Tuscany, Thomas and Luciano Betti (Betti Moto), made history along with Pirelli by winning the first electric motorcycle racing championship organized by the FIM. The e-Power series has now attracted the interest of the public of global industries related to the environment, ecology and sustainable mobility, many who have contributed to the performances of these vehicles at every major race. Victory for Pirelli in this racing series is evidence that its Diablo Supercorsa SC and Diablo Superbike tyres are a winning choice also for those who participate in eco-sustainable racing. Betti Moto began the season winning the opening round in April on the occasion of FIM Endurance World Championship Le Mans 24-hour event in France and was crowned champion in front of 69,000 FIM World Superbike fans at the fifth and final round in Imola, Italy. Thomas Betti won the championship by just one point over the competition and ahead of third-placed Pirelli rider Matthias Himmelmann (Münch Team), race winner at the penultimate round at Bol D’or. Participating in only one FIM e-Power race this season, American designer Michael Czysz took his E1pc bike to victory during the Laguna Seca round of the MotoGP calendar. All three riders found their race-winning performance on Diablo Supercorsa or Diablo Superbike tyres, offering an easiness of handling and accepting the immediate torque of the electric engines. Giorgio Barbier, Racing Director, Pirelli Moto offered, “The e-Power championship represents a new visibility into the possibilities of sustainable racing. Pirelli Diablo Supercorsa tyres are known for delivering maximum grip and regular wear, critical for electric motors which generate full torque right from standstill. The technology and investments in the field of electric-powered bikes constantly change the competitiveness of these teams, with true innovation at its core.” Thomas Betti, e-Power Champion commented, “It was a historic championship, and we found little improvements every race which gave us the possibility to win. Electric motorcycle racing is not new… we’ve been competing in various racing series since 1999 and have won 8 championships, but the learning curve is so fast that from one race to the next you can make so many steps forward. We’d certainly like to thank Pirelli for their technical support this year.” The new motorcycle from Betti Moto promises to deliver over 100 hp and should be a contender for the 2011 FIM e-Power International Championship. Along with competing in the e-Power Championship, Michael Czysz also took his brand new E1pc to the Isle of Mann TT where American Mark Miller rode the bike to victory in its first outing. Mark became the second American to win on the Isle in nearly 30 years, recording an average lap speed and new track record for its class (94,6 mpg), besting last year’s time by nearly 10 mph. The same bike was then raced at the Bonneville Salt Flats where, the E1pc broke the standing land speed record for its class (155 mph) in its first outing by hitting 160 mph. Michael and the E1pc continued to improve, finally reaching 163 mph. ABOUT THE FIM E-POWER INTERNATIONAL CHAMPIONSHIP This first edition of an international championship reserved for electric-powered bikes and organized by the FIM, saw five rounds all organized in combination with prestigious motorcycle events like Endurance and Superbike World Championships. Previously, these competitors were “two-wheeled” guest of the FIA electric racing championship. FINAL RESULTS – FIM E-POWER (5 of 5 rounds): 1. Thomas Betti (Ita-Betti Moto) points 87; 2. Thijs De Ridder (Bel-Crystalyte Europe) 86; 3. Matthias Himmelman (Ger-Muench) 56; 4. Christian Amendt (Ger-Epo Bike) 48; 5. Reiner Kopp (Ger-Muench) 33; 6. Luciano Betti (Ita-Betti Moto) 26; 7. Michael Czysz (Usa-Motoczysz) 25; 8. Michael Barnes (Lightning Motorcycles) 20; 9. Stefano Brocchi (Ita-Muench) 16

Pirelli’s WRC statistics and champions

Thu, 11 Nov 2010 12:45:41 +0100

WRC events contested (since the start of 2008): 39* Special stage distance covered: 13,709.99 kilometres* Tyres supplied: 26,960* Punctures sustained: 42 (a percentage of 0.016)* World Rally Championship champions: Drivers: 2008-10: Sébastien Loeb (Citroën C4 WRC) Manufacturers: 2008-10: Citroën Production Car World Rally Championship 2008: Andreas Aigner (Mitsubishi Lancer Evolution IX) 2009: Armindo Aráujo (Mitsubishi Lancer Evolution IX) 2010: To be confirmed Super 2000 World Rally Championship 2010: To be confirmed Junior World Rally Championship 2008: Sébastien Ogier (Citroën C2 S1600) 2009: Martin Prokop (Citroën C2 S1600) 2010: Aaron Burkart (Suzuki Swift S1600) *Prior to Wales Rally GB 2010

Pirelli WRC driver quotes

Thu, 11 Nov 2010 12:43:51 +0100

Leading lights from the World Rally Championship give their views on Pirelli‟s three-year tenure as the official tyre supplier to the WRC as follows: Ken Block (USA): “Coming from a national championship where you can do what you want with tyres, I have to say it‟s been great for me that there was a controlled tyre in the WRC and one that has worked very well for me. It‟s simpler because you don‟t have to think about tyre choice and when you‟re adjusting to a new car, new events and new roads. Pirelli makes great products and it‟s been great to have Pirelli as a partner.” Mikko Hirvonen (Finland): “When things were new, we were not sure how everything would work but everybody has been very impressed with how well everything has performed and how strong the tyres have been. Pirelli‟s saying is „power is nothing without control‟ and that sentence makes a lot of sense because you need good grip to control your car. The tyres perform very well on both surfaces and the compromise between performance and strength has been achieved very well with just two different types of tyre.” Jari-Matti Latvala (Finland): “I‟m really sorry the relationship is coming to an end after three very good years. Rallying is nothing without the tyres and Pirelli has done a very good job and made a lot of investment. They have also been supporting young drivers and giving them the opportunity to compete in the WRC. One of the things I remember best about Pirelli was the 15-inch studded Sottozero tyre for the snow rallies. They were very stable and very strong, even when there was gravel on the road causing damage to the studs.” Sébastien Loeb (France): “It‟s been a good three years and of course to be world champion for a seventh time in my home country with Pirelli tyres was very special. At the start it was expected there would be some troubles because of the regulation meant you could only have two types of tyre and no mousse but there were no punctures and lots of grip so no problems. I would say the soft-compound gravel tyre has been the best one but always the tyres complete long stages in a good condition.” Sébastien Ogier (France): “I‟ve driven for two years in a World Rally Car with Pirelli tyres and they have always been very strong, which is very important for the confidence of a driver. I was also using Pirelli tyres when I won the Junior World Rally Championship in 2008. I have claimed two WRC victories with Pirelli and both times were on gravel where the tyre is very good.” Petter Solberg (Norway): “Pirelli has meant a lot to me, not just recently but for my whole career. I won my first rally with them and I was world champion with them so it has been a very good and close relationship and we‟ve certainly had some fun working with a lot of nice people. Winning the world championship with Pirelli in 2003 was a big story and they were always helping me with cutting the tyres, tell me which tyres to use at which time and always supporting me 110 per cent. I have some very good memories.” Dani Sordo (Spain): “Grip is the most important thing about a rally car. You can have a really good set-up and engine but to transfer that power and performance to the floor you need a good tyre and the Pirelli has been a very good tyre with no punctures. We get a lot of support from the Pirelli engineers and it‟s very nice that it is always the same tyre for everybody – never a problem with the consistency.” Matthew Wilson (Great Britain): “You have to give big credit to Pirelli for everything they have done. Punctures have been very much of a rarity even without the mousse we used to have and the performance has been really good. Nobody has lost a rally because of a fault with the tyres. You get a massive amount of back-up from Pirelli – they‟ve done a brilliant job.”

Pirelli completes three-year tenure as official WRC tyre supplier

Thu, 11 Nov 2010 12:14:03 +0100

Pirelli will complete its three-year tenure as the official tyre supplier to the FIA World Rally Championship under an exclusive agreement with the FIA, motorsport‟s world governing body, on Wales Rally GB this week (November 11-14). During that time Pirelli has attracted significant praise from WRC drivers and teams for producing reliable tyres that have been required to perform on different surfaces in varying weather conditions and withstand punishing terrain without the use of run-flat mousse technology, which was outlawed to save costs in 2008. Pirelli has also provided an exemplary level of customer service from its headquarters in Milan and on the ground at all WRC events through its dedicated team of expert engineers and technicians. Since 2008, Pirelli has supplied a total of 26,960 versions of its PZero, Scorpion and Sottozero tyres, celebrated three drivers‟ and manufacturers‟ champions and covered almost 14,000 kilometres of special stages over 39 world championship rallies on snow, ice, asphalt and gravel. Under the terms of its agreement with the FIA, Pirelli was challenged to focus on durability rather than outright performance when developing its WRC tyre range, albeit without using mousse inserts. It is therefore great testament to the advance design and meticulous production processes employed by Pirelli that of those 26,960 tyres supplied, only 42 have suffered failures on the punishing terrain encountered on world championship rallies, a percentage of 0.016. “Overall, the number of genuine punctures has been very small without compromising performance,” said Pirelli‟s senior WRC tyre engineer Matteo Braga. “Together with the high level of customer service and equality we have strived to achieve, that has probably been our biggest achievement, and it‟s one that everyone has recognised.” Sébastien Loeb, who has won his last three world drivers‟ titles using Pirelli tyres, added: “At the start of the agreement it was expected there would be some troubles because of the regulations meant you could only have two types of tyre and no mousse. But there were no punctures and lots of grip so no problems.” Ford team boss Malcolm Wilson said: “Pirelli have done a terrific job. Their product has worked very well with no problems on any of the rallies. They‟ve also put in a major amount of investment into the Star Driver programme.” Pirelli will continue its commitment to rallying in 2011 by supporting the new WRC Academy, which replaces the Junior World Rally Championship as the first port of call for drivers aspiring to one day become world champion. Pirelli will also provide the opportunity for six young drivers, Fredrik Ahlin (Sweden), Craig Breen (Ireland), Jan Cerny (Czech Republic), Andrea Crugnola (Italy), Brendan Reeves (Australia) and Molly Taylor (Australia), to contest the series as part of the Pirelli Star Driver programme, which it has supported for the last two seasons, amid a tough economic climate, and reinforces Pirelli‟s long-standing aim to unearth rallying‟s future talents. The current intake of Star Drivers will be in action in Wales led by New Zealander Hayden Paddon and Estonian Ott Tänak who have impressed throughout the season. Paddon will be gunning for second place in the Production Car World Rally Championship standings, while Tänak will be bidding for his second PWRC victory of the year. Fellow Pirelli Star Drivers Nick Georgiou, Peter Horsey and Alex Raschi will continue to build their experience of competing at world level. As well as a counting for overall WRC points, the gravel-based Rally GB is the last scoring opportunity of the season for competitors in the Production Car World Rally Championship, for two-litre turbocharged Group N cars, and the inaugural Super 2000 World Rally Championship for normally aspirated two-litre cars. Pirelli will supply its soft compound Scorpion tyres to both support championships, thereby underlining the performance and efficiency of the Italian rubber on a wide range of machinery. Rally GB typically throws up wintry weather with rain, mud and even ice set to add to the challenge facing the crews. Pirelli will provide the soft compound version of its Scorpion gravel tyre to competitors in four-wheel drive machinery, which is designed to offer enhanced grip and stability in wet and cold conditions. “We have to be prepared for all kinds of weather on this event, especially as it is quite late in the year, so it is classic territory for our soft compound Scorpion tyres,” said Matteo Braga, Pirelli‟s senior WRC tyre engineer. “Rally GB is always a very tricky event, as the grip is inconsistent due to a number of different surface changes and the weather. If it is muddy, it will be extremely slippery and it‟s possible that we‟re even going to see some ice on the stages, as was the case a couple of years ago.” Rally GB, which is based in the Welsh capital Cardiff, gets underway with an all-asphalt stage in Cardiff Bay on the evening of Thursday November 11 with the first car due to cross the finishing ramp in Cardiff at 15:25hrs on Sunday November 14 following a total of 20 stages over a competitive distance of 359.44 kilometres.

Pirelli gets wet at Paul Ricard

Thu, 11 Nov 2010 10:07:56 +0100

The south of France is not normally known for torrential rain, but Italian tyre firm Pirelli has successfully completed two days of wet running at the Le Castellet circuit this week in preparation for its eagerly-anticipated return to Formula One. This was made possible thanks to the advanced sprinkler system at the Paul Ricard High Tech Test Track, which is able to accurately dampen the track to any specified level of wetness for the purposes of testing, whatever the ambient conditions. Over the course of the two days of testing, Pedro de la Rosa completed 826 kilometres in the Toyota TF109: 294 kilometres on Monday and 532 kilometres on Tuesday. The test was aimed exclusively at refining Pirelli's family of two rain tyres: the extreme wet and the intermediate. The extreme wet is used for full rain conditions while the intermediate is a transition tyre that copes well with conditions between dry and wet. These tyres were previously run in Valencia at the beginning of October, and plenty of progress was made throughout the two days at Le Castellet. Pirelli was able to test both types of tyre comprehensively within a wide window of conditions, gathering some extremely useful data about each tyre's behaviour on a wet, damp and drying track. As a result, the design of the rain tyres have now been finalised and significant progress has been on the definition of the compounds. British driver Ben Hanley also tested the extreme wet tyre for GP2. Unlike Formula One, the GP2 regulations do not permit an intermediate tyre, meaning that the GP2 extreme wet has to be very versatile to cope with a wide range of rain conditions. Wet weather testing will continue next year, but for now the European phase of development has come to end and Pirelli heads next to Abu Dhabi, where the Formula One teams will have their first taste of the new rubber in a two-day test from November 19-20 following this weekend's Grand Prix. Pirelli will take two types of slick tyre to the Abu Dhabi test: the medium tyre as the prime and the soft tyre as the option. Each of the 12 Formula One cars present will have eight sets of tyres available over the course of the two days, meaning that Pirelli will take nearly 500 covers to the Middle East. Pirelli's motorsport director Paul Hembery commented: "We're very pleased with the outcome of this wet test session. The sprinkler facilities at Paul Ricard allowed us to carry out all the work that we intended in consistent conditions and maximise our time there to the best effect. With our European campaign over we now head to Abu Dhabi, which will be the first indicator of where we are really at. It's still a big step into the unknown but we believe that we have a solid foundation of products now with which to make more progress - after less than three months of running to date."

Pirelli ready for WRC season finale

Tue, 09 Nov 2010 14:17:10 +0100

Pirelli will complete its three-year tenure as the official tyre supplier to the FIA World Rally Championship under an exclusive agreement with the FIA, motorsport's world governing body, on Wales Rally GB this week (November 11-14). During that time Pirelli has won 40 events using its PZero, Scorpion and Sottozero tyres, celebrated three drivers' and manufacturers' champions, covered approximately 14,000 kilometres of special stages and supplied 26,960 tyres. Under the terms of its agreement with the FIA, Pirelli was challenged to focus on durability rather than performance when developing its WRC tyre range, albeit without using run-flat mousse technology. It is therefore great testament to the advance design and meticulous production processes employed by Pirelli that of those 26960 tyres supplied, only 42 have suffered failures on the punishing terrain encountered on world championship rallies. "Overall, the number of genuine punctures has been very small without compromising performance," said Pirelli's senior WRC tyre engineer Matteo Braga. "Together with the high level of customer service and equality we have strived to achieve, that has probably been our biggest achievement, and it's one that everyone has recognised." Pirelli will continue its commitment to rallying in 2011 by supporting the new WRC Academy, which replaces the Junior World Rally Championship as the first port of call for drivers aspiring to one day become world champion. Pirelli will also provide the opportunity for six young drivers, Fredrik Ahlin (Sweden), Craig Breen (Ireland), Jan Cerny (Czech Republic), Andrea Crugnola (Italy), Brendan Reeves (Australia) and Molly Taylor (Australia), to contest the series as part of the Pirelli Star Driver programme, which enters its third season in 2011 and reinforces Pirelli's long-standing aim to unearth rallying's future talents. The current intake of Star Drivers will be in action in Wales led by New Zealander Hayden Paddon and Estonian Ott Tanak who have impressed throughout the season. Paddon will be gunning for second place in the Production Car World Rally Championship standings, while Tanak will be bidding for his second PWRC victory of the year. Fellow Pirelli Star Drivers Nick Georgiou, Peter Horsey and Alex Raschi will continue to build their experience of competing at world level. As well as a counting for overall WRC points, the gravel-based Rally GB is the last scoring opportunity of the season for competitors in the Production Car World Rally Championship, for two-litre turbocharged Group N cars, and the inaugural Super 2000 World Rally Championship for normally aspirated two-litre cars. Pirelli will supply its soft compound Scorpion tyres to both support championships, thereby underlining the performance and efficiency of the Italian rubber on a wide range of machinery. Rally GB typically throws up wintry weather with rain, mud and even ice set to add to the challenge facing the crews. Pirelli will provide the soft compound version of its Scorpion gravel tyre to competitors in four-wheel drive machinery, which is designed to offer enhanced grip and stability in wet and cold conditions. "We have to be prepared for all kinds of weather on this event, especially as it is quite late in the year, so it is classic territory for our soft compound Scorpion tyres," said Matteo Braga, Pirelli's senior WRC tyre engineer. "Rally GB is always a very tricky event, as the grip is inconsistent due to a number of different surface changes and the weather. If it is muddy, it will be extremely slippery and it's possible that we're even going to see some ice on the stages, as was the case a couple of years ago." Rally GB, which is based in the Welsh capital Cardiff, gets underway with an all-asphalt stage in Cardiff Bay on the evening of Thursday November 11 with the first car due to cross the finishing ramp in Cardiff at 15:25hrs on Sunday November 14 following a total of 20 stages over a competitive distance of 359.44 kilometres.

Pirelli on top in Cyprus

Sun, 07 Nov 2010 14:21:00 +0100

Thanks to Nasser Al-Attiyah's win on the Cyprus Rally, Pirelli has made it three victories and one second place from four participations in the Intercontinental Rally Challenge this year. Al-Attiyah brought his Ford Fiesta S2000 home ahead of Roger Feghali in second and the identical Pirelli-equipped Fiesta of Martin Prokop in third, who had led until he encountered a mechanical problem, putting two Pirelli-equipped cars on the podium in Cyprus. This latest dominant performance from Pirelli has underlined the qualities of the Italian tyres in the face of its strongest rivals on a wide range of surfaces. Cyprus was the first mixed-surface event in the history of the Eurosport-backed IRC series, with 51% asphalt and 49% gravel. Nonetheless, the competitors were obliged to use gravel tyres for the whole event apart from the spectator superspecial. Al-Attiyah won five stages of the rally while Prokop won four, meaning that Pirelli tyres claimed nine out of a possible 14 stages. Not only were the gravel tyres running on asphalt for a large proportion of the time but there was also a wide range of temperatures that the rubber had to cope with. In November, conditions were cool in the morning and evening but exceeded 25 degrees centigrade in the afternoon. The level of grip on the mixed stages also varied dramatically, but Al-Attiyah was able to make the most of consistent traction from his tyres. "I think Pirelli really helped us to make the difference here," said Al-Attiyah. "Although the conditions were very difficult and it was the first time that we were here with this car, we had a really good level of performance from our tyres that helped us to find grip even when we were driving on asphalt with gravel tyres. Martin pushed really hard too, and without the mechanical problem that he had it would certainly have been a very close fight between us for the win." Pirelli's Rally Manager Mario Isola concluded: "The excellent performances from Nasser and Martin have underlined not just the performance but also the versatility of our tyres, as they have been effective within a wide range of conditions, even on surfaces for which they were not designed. The stage wins that Nasser and Martin achieved between them underline our superiority on this event, and we would like to congratulate them both on this great result, which confirms our strong performance on the IRC all year." Starting with victory on the Monte Carlo Rally with Mikko Hirvonen and Ford in January, Pirelli also won in Sanremo with Paolo Andreucci and Peugeot - who finished second in Sardinia as well.

Industrial Plan 2011-2013 and Vision to 2015

Thu, 04 Nov 2010 08:00:05 +0100

PIRELLI TO FOCUS ON PREMIUM SEGMENT IN ALL AREAS, PREMIUM GROWING FASTER THAN MARKET, AND ON AREAS OF RAPID ECONOMIC GROWTH; INVESTMENT OF 1.9 BILLION EUROS IN 5-YEAR PERIOD; STRONG GROWTH IN ASIA-PACIFIC, LEADERSHIP CONSOLIDATION IN LATAM, NEW OPPORTUNITIES IN MATURE MARKETS IN PREMIUM SEGMENT EXTENDED TO GREEN AND SUSTAINABLE PRODUCTS; INCREASED ‘LOCAL-FOR-LOCAL’ PRODUCTION, BRINGING OFFER CLOSER TO DEMAND; LAUNCH OF NEW MEXICAN PLANT TO SERVE NAFTA AREA: INITIAL INVESTMENT 210 MILLION DOLLARS; IN 2015, TWO THIRDS OF PROFITABILITY WILL COME FROM RAPIDLY GROWING ECONOMIES AND LATAM; AVERAGE ANNUAL REVENUE GROWTH OVER THREE YEARS SEEN AT 8%, WITH EBIT MARGIN RISING TO BETWEEN 10.5% AND 11.5% IN 2013; TYRE SECTOR DIFFERENT TO AUTOMOTIVE, MORE PROFITABLE, LESS EXPOSED TO THE ECONOMY, MORE FLEXIBLE; FOCUS ON PREMIUM SECTOR AND EFFICIENCY PLAN WILL OFFSET INCREASES IN RAW MATERIAL COSTS; BY 2015, 60% OF PRODUCTION WILL COME FROM PLANTS LESS THAN 10 YEARS OLD; ITALY’S SETTIMO TORINESE PLANT TO BE THE GROUP’S MOST ADVANCED, INVESTMENT OF 155 MILLION EUROS, FULLY OPERATIONAL IN 2011; CONTINUED FOCUS ON RESEARCH AND DEVELOPMENT, MAINTAINING CONSTANT PROCESS AND PRODUCT INNOVATION; SUSTAINABILITY PLAN: BY 2015 WATER CONSUMPTION TO FALL 35%, ENERGY CONSUMPTION TO FALL 15%, WITH CONSEQUENT DECLINE IN CO2 EMISSIONS; PIRELLI BRAND VALUE ESTIMATED AT 1.8 BILLION EUROS BY INTERBRAND. SOUND FINANCIAL SITUATION: NET DEBT/EBITDA RATIO APPROX 0.6 IN 2015; DEBT STRUCTURE IMPROVED, MATURITIES LENGTHENED THE PLAN DOES NOT INCLUDE M&A OPERATIONS OR CAPITAL INCREASES Milan, 4 November 2010 – The Board of Directors of Pirelli & C. approved the 2011-2013 industrial plan, with vision to 2015. The plan was illustrated today to the financial community by Pirelli & C. Chairman Marco Tronchetti Provera and Chief Operating Officer Francesco Gori, with the support of Maurizio Boiocchi, the head of Research and Development, and Ugo Forner, Guglielmo Fiocchi, Andrea Pirondini and Alberto Pirelli, respectively the heads of the Car, Moto, Truck and Agro business units. “Pirelli has concluded its transformation into a pure tyre company and reached its targets ahead of schedule. In a world that is changing fast and in which new areas of growth are emerging, we have developed a plan which puts the company in the best possible position to compete”, said Mr. Tronchetti Provera. “The strategies and the actions envisaged – he added – will allow Pirelli to achieve average annual growth of 8% over the period of the plan, with profitability (Ebit margin) rising to between 10.5% and 11.5% in 2013. This result will be mainly achieved through an even greater focus on the Premium segment, which is growing at a faster pace than the rest of the market and also within the replacement segment. The latter, which represents 75% of Pirelli’s revenues, minimizes the tyre segment’s exposure to slowdowns in the auto sector and gives it a higher structural profitability than auto. That focus will be achieved by increasing investment and production capacity in the premium segment, as well as through a re-balancing of our production among rapidly growing economies (RDE), Latin America and mature markets (with about two thirds of our profitability deriving from the RDE and Latam areas) and a technological upgrade of our production sites and machinery so that by 2015, 60% of production will be in plants less than ten years old. These actions will allow us to offer products which are constantly being renewed (in 2013, 30% of total sales will be new products), always more tailored to the specific needs of customers, with reduced environmental impact and greater competitiveness thanks to continued innovation in materials and processes. All of this leveraging the brand’s potential and counting on a young and multi-ethnic management team.” INDUSTRIAL PLAN 2011-2013 AND VISION TO 2015 GUIDELINES AND OBJECTIVES Why a new plan? The effectiveness of the actions implemented on the basis of the 2009-2011 plan, helped by a recovery in tyre demand from the end of 2009, permitted Pirelli to raise its financial targets three times in the course of 2010 and to reach, one year ahead of schedule, goals set for 2011 in the previous industrial plan. In line with its strategy of focusing on the tyre sector, as outlined in the 2009-2011 industrial plan, Pirelli proceeded with the disposal of non-strategic activities (Telecom Italia, Alcatel-Lucent Submarine, Oclaro, Pirelli Broadband Solutions) and concluded the separation from the group of Pirelli Real Estate, transforming itself into a ‘pure Tyre company’ 98% of whose revenues are already derived from the activities of that sector. Alongside the tyre activities, the company is also pursuing the Pzero fashion and high-tech project and in line with Pirell’s ‘green performance’ strategy, the activities of Pirelli Eco Technology and Pirelli Ambiente, respectively operating in emission control technology and the energy and environment areas. In the light of these factors, Pirelli has defined a new 2011-2013 industrial, with vision to 2015. New Plan Scenario 2011-2013 The dynamics of the tyre sector The tyre sector, over the last ten years, has seen constant expansion: between the years 2000 and 2008 the average annual rate of growth in value was 9% while the decline of approximately 10% seen between 2008 and 2009, as a consequence of the global economic crisis, was recovered in 2010. Over the next five years, average annual growth in the sector is expected to be 7%. In this context, Pirelli was the only operator, among the majors, to increase its market share, up 0.7 percentage points, thanks to constant product innovation and effective management of operations. The ‘Premium’ market: continuing growth and new opportunities The auto park is in constant growth, driven by demand from rapidly growing economies (RDE), and the park of cars with premium tyres, an area in which Pirelli is pre-eminent, is growing even faster. The market of vehicles (car and light car vehicles) with Premium tyres is expected to grow 5.2% between 2010 and 2015, while the auto park is expected to grow by 3.1%. In mature markets, as in growing economies, changes in consumer behaviours offer new business opportunities in that they re-define the ‘Premium’ segment, which is no longer solely associated with performance and luxury, but with products linked to issues of sustainability and safety, areas dominated by Pirelli due to its advanced skills and technology. Tyre and automotive: two sectors with different dynamics Revenues in the tyre sector are based principally on volumes which are affected only in part by negative economic cycles: sales are strongly driven by replacement which at the market level accounts for 70% of sales in the car and light truck vehicle segment (over 80% in the truck segment) and for Pirelli over 75% of sales. This dynamic makes the tyre sector more flexible and less exposed to possible slowdowns in the auto sector and demand for original equipment. This guarantees the sector a higher structural profitability: the Ebit margin of the ten major tyre makers is estimated to be 7.3% in 2010, compared with 5.7% for the ten major auto component makers and 4.3% for the ten major car makers. The tyre sector is also less subject to volatility linked to raw material costs. Greater importance to ‘local for local’: bringing production closer to demand is crucial The global economy can be defined, more and more, as a plurality of macro-areas divided by tariff and other barriers (technical requirements, product certification, additional costs linked to administrative import procedures). In these regions, which are constantly growing and are the engines of world growth, it is crucial to be present with local production facilities capable of meeting ever stronger local demand (‘local for local’ production). Pirelli today Pirelli today is already a macro-regional player, the leader in high growth Latin America and with a geographically competitive industrial presence. Today, 75% of its production is located in high-growth countries, with growing demand and favourable industrial costs. The company holds a pre-eminent position in the ‘Premium’ segment, has consolidated relationships with the most prestigious car marques and offers a complete range of ‘green’ products, which today already account for more than 36% of its sales. With a brand value estimated by Interbrand of approximately 1.8 billion euros, the Pirelli brand represents a potential to be leveraged and will become even stronger through its involvement with Formula One. In the tyre sector, Pirelli is among the companies that invest most in research and development (approximately 3% of sales annually) with the aim of continual product and process innovation, and to take advantage of business opportunities linked to new technologies. The company is particularly attentive to material innovation, both in the field of renewable materials and of natural and synthetic rubbers, also through the development of partnerships. This also extends to the development of partnerships, as is the case in natural and synthetic rubber. Its management is multi-cultural and young: the 280 top managers that lead the company come from 15 nations and are on average under 46 years of age. Pirelli in 2015 In 2015, around 60% of Pirelli’s production capacity will consist of plant and machinery launched in 2005 or after, and therefore less than 10 years old. The company will have facilities that are highly specialized in the ‘Premium’ segment and located in high-growth countries with favourable industrial costs. The geographic distribution of production facilities will ensure a balanced presence between mature markets and rapidly growing economies (RDE), which together with Latin America will account for two thirds of the group’s profits. The reinforcement of its position in these regions will reduce the company’s exposure to possible economic downturns which could affect mature areas such as Europe and the USA, where, however, Pirelli will be able to take advantage of new opportunities stemming from the broadening of the Premium segment, as noted earlier. Pirelli will continue to offer a complete range of Premium tyres, which are always being renewed and are capable of satisfying the specific needs of different customer types. Thanks to these actions, Pirelli will be transformed, as demonstrated by the expected evolution of the composition of sales by segment, region, channel and plant age. In 2015, Pirelli expects that 73% sales will come from the Premium Car and Light Truck segment (66% in 2010) and 76% from the After Market (75% in 2010). Changing perspective, 57% will come from fast growing economies (RDE, Latam, Apac, Russia, Emea, equal to 52% in 2010) and over 60% from new sites or new machinery (30% in 2010). The transformation of Pirelli in numbers Pirelli’s transformation and growth will be supported by a total investment of 1.9 billion euros between 2011 and 2015, an increase from the 1.5 billion euros invested between 2006 and 2010. Almost all this investment (99%) will go to the tyre sector, to meet growing demand in the market, in particular in the premium segment, in a market in which production over-capacity is not foreseen..... PDF Version (KB)

The Board of Directors approves Financial Statements as of 30 September 2010

Wed, 03 Nov 2010 19:16:56 +0100

PIRELLI & C. SPA BOARD OF DIRECTORS APPROVES RESULTS FOR NINE MONTHS ENDED 30 SEPTEMBER 2010: MARKED IMPROVEMENT IN OPERATING RESULTS FOR FIRST NINE MONTHS COMPARED WITH SAME PERIOD IN 2009 PIRELLI & C. GROUP

REVENUES: +18.9% to 3,703.4 MILLION EUROS (3,114.7 MILLION EUROS ON 30 SEPT 2009)

OPERATING RESULT: +69.7% TO 309.6 MILLION EUROS (182.4 MILLION EUROS ON 30 SEPT 2009)

NET INCOME OF CONTINUING OPERATIONS 164.1 MILLION EUROS, MORE THAN THREE TIMES THE 50.0 MILLION EUROS OF THE FIRST NINE MONTHS 2009

TOTAL NET CONSOLIDATED RESULT NEGATIVE FOR 101.5 MILLION EUROS DUE TO THE ACCOUNTING EFFECT OF THE SEPARATION OF PIRELLI RE (NEGATIVE FOR 265.6 MILLION EUROS)

OPERATING CASH FLOW POSITIVE FOR 119.0 MILLION EUROS (174.6 MILLION EUROS FIRST NINE MONTHS 2009); INVESTMENTS GROW TO 227.3 MILLION EUROS (102.3 MILLION EUROS FIRST NINE MONTHS 2009); NET FINANCIAL POSITION NEGATIVE FOR 704.9 MILLION EUROS (-528.8 MILLION EUROS ON 31 DEC 2009)

PIRELLI TYRE

REVENUES: +20.3% TO 3,559.1 MILLION EUROS (2,958.6 MILLION EUROS ON 30 SEPT 2009); OPERATING RESULT: +50.1% TO 334.3 MILLION EUROS (222.7 MILLION EUROS FIRST NINE MONTHS 2009), WITH EBIT MARGIN RISING TO 9.4% FROM 7.5%

REVENUES IN THE THIRD QUARTER: +18.3% TO 1,233.8 MILLION EUROS (1,042.7 MILLION EUROS THIRD QUARTER 2009); OPERATING RESULT: +36.2% TO 117.0 MILLION EUROS (85.9 MILLION THIRD QUARTER 2009), WITH EBIT MARGIN RISING TO 9.5% FROM 8.2%

Milan, 3 November 2010 – The Board of Directors of Pirelli & C. SpA, which met today, reviewed and approved the interim financial statements for the nine months ended 30 September 2010. The first nine months of 2010 confirmed the positive performance already recorded in the first half of the year, underscoring a marked improvement in operating results compared with the same period a year earlier. Pirelli & C. SpA Group At the consolidated level, revenues to 30 September 2010 totaled 3,703.4 million euros, an increase of 18.9% compared with 3,114.7 million euros in the first nine months of 2009. In the third quarter, in particular, revenues were 1,276.9 million euros, an increase of 17.3% compared with 1,088.5 million euros in the third quarter 2009. The operating result (EBIT) to 30 September 2010 including restructuring charges of 12.4 million euros (28.1 million 30 September 2009) was 309.6 million euros, an increase of 69.7% from 182.4 million euros in the same period of 2009. The margin as a percentage of revenues, 8.4%, shows a significant improvement from the 5.9% recorded in the first nine months of 2009. In the third quarter, in particular, the operating result (EBIT) including restructuring charges was 116.2 million euros, growing 82.7% from 63.6 million euros in the third quarter of 2009, with the margin as a percentage of revenues rising to 9.1% from 5.8%. The net result excluding discontinued operations was positive 164.1 million euros, more than three times the 50.0 million euros recorded for the first nine months of 2009. The figure also includes capital gain of 18.4 million euros following the market sale in the third quarter of the entire stake held in Oclaro Inc (formerly Avanex), a company active in second generation photonics. Including the effect of discontinued operations, linked to the separation of Pirelli RE which concluded on October 25th, 2010, the net result was negative 265.6 million euros (202.9 million euros for aligning book value with market value, 32.9 million following reversal of goodwill recognized in the consolidated accounts of Pirelli & C. allocated to Pirelli RE and 0.8 million euro attributable to the operation’s direct transaction costs, together with Pirelli RE’s negative net result of 29.0 million euros), the total consolidated net result on 30 September 2010 was negative for 101.5 million euros, while the net result attributable to Pirelli & C. SpA was negative for 87.0 million euros (positive for 18.2 million euros on 30 September 2009). Consolidated net equity on 30 September 2010 stood at 2,132.3 million euros compared with 2,494.7 million euros at the end of 2009 and 2,316.3 million euros on 30 June 2010. The consolidated net equity attributable to Pirelli & C. SpA totaled 1,823.2 million euros compared with 2,175.0 million euros at the end of 2009 and 2,004.9 million euros on 30 June 2010. In the first nine months of 2010, net cash flow from operations was positive for 119.0 million euros (positive for 174.6 million euros in the same period of 2009). The group’s net financial position on 30 September 2010 was negative for 704.9 million euros compared with -528.8 million euros at the end of December 2009 (-696.9 million euros on 30 June 2010), with the difference essentially due to the cash out for restructuring (51.8 million euros) and dividends paid (85.1 million euros). On 30 September 2010, group employees totaled 31,050 compared with 29,570 on 31 December 2009 and 30,989 on 30 June 2010. With regard to the separation of Pirelli Real Estate, as approved by the Board of Directors on 4 May 2010 and by shareholders at their meeting on 15 July 2010, the activities of the Pirelli Real Estate group are classified as discontinued operations and in the income statement are booked as a single item, which includes Pirelli Real Estate’s net result, the fair value adjustment of Pirelli Real Estate’s activities and the direct costs attributable to the transaction; this item alone contributes to the group’s net result. For the sake of comparison/For the purposes of homogeneity, the figures for 2009 have been reclassified in the same manner. Pirelli Tyre The revenues of Pirelli Tyre to 30 September 2010 totaled 3,559.1 million euros, an increase of 20.3% compared with 2,958.6 million euros in the same period of 2009. On a like-for-like basis, growth in the first nine months was 16.7%, with a positive contribution coming from both volumes (+8.6%) and the price/mix component (+8.1%), while foreign exchange brought an increase of 3.6%. In the third quarter, in particular, sales totaled 1,233.8 million euros, an increase of 18.3% from 1,042.7 million euros in the third quarter 2009. In the period, the organic growth reached 14.1%, with volumes up 1.8% and the price/mix component up 12.3%. The positive contribution from foreign exchange in the quarter was 4.2%. The operating result for the quarter rose 36.2% to 117 million euros from 85.9 million euros in the third quarter of 2009, with the margin as a percentage of revenues climbing to 9.5% from 8.2%. Overall, there was significant growth in both business segments. In the Consumer segment, the increase in the first nine months of the year was 16.9% (+16.5% in the first quarter, +19.1% in the second quarter and +15.1% in the third quarter). In the Industrial segment, the increase was 28.8% (+28.4% in the first quarter, +32% in the second quarter and +26.1% in the third quarter). The gross operating result (Ebitda) before restructuring costs was 496.9 million euros, an increase of 29.8% compared with 382.8 million euros on 30 September 2009, with a margin as a percentage of sales equal to 14.0% (12.9% on 30 September 2009). In the third quarter, in particular, Ebitda amounted to 173.0 million euros (142.0 million euros in the third quarter 2009), with the Ebitda margin rising to 14.0% compared with 13.6% in the same period in 2009. The operating result (Ebit) before restructuring charges was 346.7 million euros, an increase of 44% from 240.8 million euros in the first nine months of 2009, and a margin as a percentage of revenues of 9.7% (8.1% on 30 September 2009). In the third quarter, in particular, the Ebit margin before restructuring costs was 9.8% compared with 9.0% in the third quarter 2009. The operating result after restructuring charges on 30 September 2010 was 334.3 million euros, an increase of 50.1% compared with 222.7 million euros in the first nine months of 2009, with a margin as a percentage of revenues of 9.4% (7.5% in the same period of 2009). In the third quarter, in particular, the operating result after restructuring charges amounted to 117.0 million euros, an increase of 36.2% compared with 85.9 million euros in the same period in 2009 and a margin as a percentage of sales rising to 9.5% from 8.2% in the third quarter 2009. Net income on 30 September 2010 rose to 176.6 million euros (after financial charges and income from equity investments of 52.3 million euros, and tax burden/fiscal charges of 105.4 million euros) from 90.9 million euros in the same period of 2009. In the third quarter, net income was 66.2 million euros compared with 36.7 million euros in the same period of 2009. In the Consumer (car/light truck and motorcycle tyres) segment, revenues in the first nine months of 2010 totaled 2,463.8 million euros, an increase of 16.9% from 2,108.0 million euros in the same period of 2009, while the operating result from recurring/ordinary activities before restructuring charges was 234.7 million euros (160.5 million euros on 30 September 2009), with a margin as a percentage of revenues of 9.5% (7.6% in the same period of 2009). The increase in sales volume was 7.1%, with the addition of a price/mix increase of 7.0%, accompanied by a consequent organic increase in sales of 14.1%. Foreign exchange had a positive impact of 2.8%. In the third quarter, in particular, revenues totaled 847.1 million euros, an increase of 15.1% compared with 736.0 million euros in the same period of 2009 and an improvement in profitability both in absolute value (operating result before restructuring charges rising to 80.5 million euros from 64.1 million euros) and in terms of percentages (Ebit margin before restructuring charges rose to 9.5% from 8.7%). In the first nine month of the year, the Original Equipment and Replacement channels both showed signs of market recovery with respect to the same period of 2009. In Original Equipment there was growth in all areas, with Europe up 15%, Nafta up 54% and Mercosur up 15%. In the Replacement channel there was a 9% increase in Europe, a 5% increase in Nafta and a 16% increase in Mercosur. In the Industrial (tyres for industrial vehicles and steelcord)i business segment, total revenues amounted to 1,095.3 million euros, an increase of 28.8% compared with 850.6 million euros in the same period of 2009, while the operating result from recurring/ordinary activities before restructuring charges was 112.0 million euros, with a margin as a percentage of revenues of 10.2%, compared with 80.3 million euros on 30 September 2009, and a margin as a percentage of revenues of 9.4%. Organic growth in revenues amounted to 23.3%, sales volumes were 12.3% higher in total compared with the first nine months of 2009, while the rise in the price/mix component reached 11.0% and foreign exchange had a positive impact of 5.5%. In the third quarter, revenues were 386.7 million euros (306.7 million euros in the third quarter 2009) and the operating result from ordinary activities before restructuring charges was 41.0 million euros (30.2 million euros in the third quarter 2009), with an improvement of the margin as a percentage of revenues to 10.6% compared with 9.8% in the third quarter 2009. As for the Industrial segment, the market also recovered in both sales channels when compared to the critical situation in the first nine months of 2009, above all in Mercosur (+58% in Original Equipment and +23% in Replacement). Sales also rose in Europe with Replacement +46% and Original Equipment +22%. The number of employees on 30 September 2010 stood at 29,118, an increase of 1,637 (of which 929 are temporary) compared with 31 December 2009. Outlook for 2010 On 14 October 2010, the Board of Directors once again raised 2010 targets. For the Pirelli & C. Group revenues are expected to reach approximately 4.8 billion euros (considering the reclassification of Pirelli Broadband Solutions as a discontinued operation following the announced sale), the Ebit margin is expected to be above 7.5% with Ebit of approximately 380 million euro and net financial debt below 700 million euros. For Pirelli Tyre, revenues for 2010 are estimated at more than 4.7 billion euros, with an Ebit margin above 8.5% and Ebit of approximately 420 million euros. Significant events since 30 September 2010 Pirelli’s development plans for Argentina were announced on 20 October 2010. These aim to increase production capacity and reinforce Pirelli’s existing leadership in Latin America, where the group’s activities began 100 years ago. The plans call for investment of 100 million dollars by 2013, of which approximately 20 million dollars will be spent in 2010 in order to make technological and qualitative improvements, as well as increase capacity. By the end of the period, output will be above an estimated six millions units per year, an increase of more than one million units from the present five million. On 21 October 2010, Pirelli & C. S.p.A. and Advanced Digital Broadcast Holdings SA (ADB), a company listed in Switzerland, signed an agreement based on which ADB will acquire 100% of Pirelli Broadband Solutions SpA, a company 100%-owned by Pirelli & C. SpA. A total consideration of approximately 30 million euros was agreed upon, net of reserves of 8.6 million euros disbursed by PBS to Pirelli & C. last September. The price negotiated, which will be paid at the closing, consists of 22 million euros in cash and 400,000 ADB shares, equal to approximately 7.2% of capital. The separation of Pirelli & C. Real Estate SpA (Pirelli Re) from Pirelli & C was completed on 25 October 2010. In order to comply with accounting regulations, Pirelli & C. SpA’s separate financial statements were restated to reflect the loss resulting from the transaction which, based on Pirelli Re’s official stock market price on the above-mentioned closing date (0.4337 euro), rose from 178,813,982.89 euros to 211,312.328.00 euros. There was, consequently, also a change in net equity of 32,498,345 euros. At the same time, following the assignment of Pirelli Re shares (now Prelios SpA), Pirelli & C. SpA booked a loss of approximately 118.3 million euros in its income statement equal to the difference between the loss as calculated above and the net book value of Prelios SpA shares. The impact of the transaction on the consolidated financial statements was a negative 219.2 million euros, inclusive of the recognition in the income statement of the above mentioned loss previously recognized at equity in Pirelli & C. SpA’s financial statements and relative to Pirelli RE-Prelios (approximately 32 million euros), as well as the elimination of goodwill allocated to the real estate business (approximately 33 million euros). *** Industrial Plan 2011-2013, Vision 2015 The Industrial Plan 2011-2013, Vision 2015 will be presented tomorrow at a meeting with the financial community. Pirelli & C. SpA’s Chairman, Marco Tronchetti Provera and the group’s top management will be present. Journalists may follow the meeting from the press room at the company’s headquarters. The event and slide presentation may also be seen via webcast – in real time – at www.pirelli.com in the Investors Relations section. *** Amendments to the Bylaws The Board of Directors approved a number of amendments to the bylaws to update them for the mandatory changes introduced not only by Decree 27/2010, in implementation of Directive 2007/36/CE in Italy aimed at facilitating participation at general meetings by shareholders of listed companies, but also of Decree 39/2010, in implementation of Directive 2006/43/CE, relative to statutory audits of annual and consolidated accounts. Approval of Procedures for Related Party Transactions In accordance with Consob Regulation no. 17221/2010 and having obtained the favourable opinion of the Audit, Risk and Corporate Governance Committee (entirely made up of independent directors), the Board of Directors also approved a set of “Procedure for related party transactions” and has entrusted the Audit, Risk and Corporate Governance Committee with the task of also serving “Committee for related party transactions” with the exception of remuneration issues entrusted to the Remuneration Committee. The new bylaws and the new procedures for related party transactions will be published on the Company website at www.pirelli.com. PDF Version (88KB)

Board of Directors upward revision of 2010 Group and Pirelli Tyre targets

The Board of Directors approves Financial Statements as of 30 June 2010

De la Rosa racks up the kilometres at Le Castellet

Wed, 03 Nov 2010 08:08:52 +0100

Pirelli's Formula One testing programme has now rolled past the 7000-kilometre mark as Pedro de la Rosa resumed his duties at the Le Castellet circuit in southern France at the wheel of Toyota's TF109. Le Castellet, which is also known as the Paul Ricard High Tech Test Track by virtue of its advanced facilities, contains a wide variety of configurations designed to test every aspect of a car's overall performance. De la Rosa, who had not driven on the circuit since 2006, completed a total of 315 laps and 1118.5 kilometres during the two-day test: 158 laps on day one and 157 laps on day two. The Spaniard tested both the soft and super-soft compound rubber, over short and long runs on the 3.551-kilometre configuration, on his third outing in the role of Pirelli's test driver as the Italian company gears up to its Formula One return next year. The first morning of the test was affected by damp conditions, which meant that de la Rosa had an unscheduled opportunity to run on Pirelli's wet tyres again in order to dry out the wet parts of the circuit. Once the track was dry, de la Rosa carried out a number of short runs with the soft compound tyre during the afternoon, before switching to longer runs at the end of the first day. Conditions were sunny from the outset throughout the second day, with temperatures peaking at 25 degrees centigrade in the afternoon. In the morning de la Rosa continued work on tyre construction, trying out Pirelli's latest evolutions as a result of the data gained from previous tests. In the afternoon, de la Rosa sampled Pirelli's super-soft compound rubber for the first time. Like the soft rubber, this is also an 'option' tyre, used to generate maximum grip and performance. Once more the Spaniard combined short runs of seven laps and longer runs of 20 laps, driving until daylight became marginal just before 5pm on each day. Pedro de la Rosa said: "These have been two of the most productive days of testing that we have seen yet, and I'm particularly encouraged by the consistency of the times that we managed to set on both the short and the long runs, demonstrating that the tyres are quick to reach a constant level of peak performance. There were a number of interesting solutions that we have started to investigate in depth. We enjoyed perfect reliability from the car and the tyres, which allowed us to cover more than a thousand kilometres and take some important steps forward in the development programme." Pirelli will continue testing at Paul Ricard next week for two days, taking advantage of the circuit's modern facilities to complete the European test schedule before the Formula One teams get their first chance to sample Pirelli's tyres after the Abu Dhabi Grand Prix at the end of the month. Pirelli's motorsport director Paul Hembery concluded: "Once more, Pedro's knowledge and feedback has given us some valuable information to finalise the second compound that we will bring to Abu Dhabi, as we finish our testing in Europe this month. Next week's test at Paul Ricard will enable us to complete our test programme on wet and intermediate tyres, taking advantage of the facilities available there."

Pirelli confirms 100% supply partnership with Ducati, first fitment of new Diablo Rosso II on 2011 Diavel in unique size

Tue, 02 Nov 2010 11:43:27 +0100

Pirelli Moto and its Diablo Rosso II share in the recent announcement of the 2011 Ducati Diavel, the newest sport lifestyle model from the Borgo Panigale factory matched with Pirelli's latest tyre of the Rosso Generation in new 240/45ZR17 sized rear and 120/70ZR17 front. This original equipment fitment comes as part of a three year supply agreement with the Italian bike manufacturer; however this new tyre model and its specific dimensions required a deeper understanding of vehicle dynamics demanded by the new motorcycle's Superbike-derived engine and 207kg (456lb) weight. The Diavel is among a number of collaborative special projects with Ducati, and therefore joins the 2010 Ducati Multistrada introduced one year ago and its Pirelli Scorpion Trail tyres in model-specific sizes. Diablo Rosso II is Pirelli Moto's newest radial tyre for all supersport riding conditions, even the wet, taking on certain WSBK technologies as well as the concept of Personalisable sidewalls. Due to particular needs of the motorcycle, Ducati and Pirelli concluded that a range extension of the Diablo Rosso, fitted to the Ducati Monster, was not as practical as working towards a new product to address the particular handling dynamics, power and speed of the Diavel in the dry and even more so under wet conditions. Thus a project was born to develop both a new tyre model that is also available as the first supersport solution in this tyre width and dimension. The Diablo Rosso II is the ideal tyre choice for the Diavel with a WSBK developed Bi-compound tread and EPT (Enhanced Patch Technology) matched to Pirelli's patented 0° steel belt structure. The newly sized 240/45ZR17 Diablo Rosso II rear tyre features a Bi-Compound tread for maximum grip at full lean and long lasting performance on road; the Grip compound covering a slick-like shoulder area of the tread (12.5% on either side) and a second compound in the central zone (75%) evolved from the Diablo Rosso. Both have undergone extensive testing with Ducati Traction Control for fast warm-up capabilities, high traction under straight acceleration and confident grip at all lean angles to suit the many different riding styles of the Diavel. The new profile comes from ICS (Ideal Contour Shaping) design, adopting a new "45" section height on a 240 mm wide, 17" dimension rear tyre matched to a 120/70ZR17 front for both a stability under hard acceleration and ease of lean-in while cornering. Pirelli's patented 0° degree steel belt beneath the tread optimizes tyre shapes and elasticity for progressive feedback at lean, optimal bump absorption. Together with these new compounds and structural elements, a maximum braking stability is able to compliment the Diavel's precise ABS braking system. Diablo Rosso II helps compliment and define the 2011 Ducati Diavel as a comfortable sport lifestyle motorcycle. The Diavel fitment of this new tyre joins the Ducati Monster 1100 Evo, which will fit Diablo Rosso II tyres in 120/180 sizes. Like the Diablo Rosso Corsa, Diablo Rosso II has the possibility to apply personalized labels to dedicated areas on its sidewalls, allowing motorcyclists to design their own labels with various fonts, colors, flags, circuits and other logos on a special section of www.pirelli.com.

New Diablo Rosso II is the ultimate sport tyre of the Rosso Generation for absolute road use, now in Bi-Compound and Personalisable

Tue, 02 Nov 2010 11:43:14 +0100

World Premiere of Diablo Rosso II to commence EICMA gala at Villa Borromeo on November 2nd with prestigious guests Checa and Cairoli In a worldwide preview and on occasion of the 68th EICMA International Motorcycle Show, Pirelli Moto introduces the Diablo Rosso II, the new reference supersport road tyre from the Italian group. The Rosso Generation premium radial tyre line utilizes modern technologies drawn from Pirelli's WSBK experience, such as EPT and specific groove design, along with attractive styling elements like sidewall and shoulder identification and the option to personalize with unique labels. The initial canvas of Rosso Generation comes from the road-worthy sport performances of the original Diablo; the Rosso name added to represent the Italian passion for racing and its associated technology. Rosso Generation is made up of the new Diablo Rosso II and its trackday counterpart, the Diablo Rosso Corsa, a tyre whose strength is dry grip and track performance. Pirelli will open EICMA's evening gala with the product preview, attended by World Superbike ace Carlos Checa of Althea Ducati and World Motocross MX1 Champion Tony Cairoli of KTM Factory, who will be on hand to comment on the exciting world championships they raced in and won using Pirelli Tyres. NEW DIABLO ROSSO II Diablo Rosso II is the ultimate sport tyre of the Rosso Generation for absolute road use. Filled with technology developed by Pirelli during its seven years in the Superbike World Championship, Diablo Rosso II is the ideal evolution of Diablo Rosso and replaces its predecessor and inherits all the sporty identity, whilst at the same time emphasizing and improving versatility, wet performance and regularity of wear. Diablo Rosso II raises the bar of the Rosso Generation's sport capabilities in respect to road use and is destined for Supersport and Naked bikes that demand top performance and riding safety in all types of use, from twisty countryside roads to city traffic and under both wet and dry conditions. Diablo Rosso II now features a Bi-Compound tread spread between a grip compound on the shoulder (25%) and wet/mileage compound on the center (75%) of the rear tyre. Grip is enhanced even further by EPT (Enhanced Patch Technology) developed in the WSBK experience which optimises contact area with the road at all lean angles. This contact patch area maximization is due in part to an ICS (Integrated Contour Shaping), complimenting modern bikes' handling and power delivery by ideally mapping tyre profiles; resulting in strong improvements in stability, performance in the wet and safety in corners. The tyre's FGD (Functional Groove Design) restyled tread pattern contributes to improved wear regularity and offers a land/sea ratio 2% more surface contact for greater confidence in the dry and an increased transfer of power to the ground.

Pirelli to support new WRC Academy

Fri, 29 Oct 2010 07:49:30 +0200

Pirelli has underlined its commitment to rallying and unearthing the sport's future stars by supporting the new WRC Academy as the Official Tyre Supplier from 2011. Conceived as the replacement for the existing FIA Junior World Rally Championship, the WRC Academy will be contested by aspiring drivers on six rounds of next season's World Rally Championship, which Pirelli has supplied tyres to on an exclusive basis from 2008-2010. Academy participants will compete in identical Ford Fiestas, which will conform to the R2 regulations to control performance and restrict the financial outlay to 135,000 Euros for a season. In order to ensure a level playing field, all cars will be prepared by the same M-Sport organisation based in the United Kingdom. Pirelli has been a long-term backer of up and coming rallying talent and demonstrated its commitment by supporting the Pirelli Star Driver scheme, which has provided the opportunity for five young competitors to take part on six rounds of the WRC for each of the last two seasons in identical cars as part of a joint initiative with the FIA, motorsport's world governing body. The Pirelli Star Driver scheme will continue in 2011 with a fresh intake of six drivers from around the world, who will take part in the WRC Academy against other young competitors. The six Pirelli Star Drivers, Fredrik Ahlin (Sweden), Craig Breen (Ireland), Jan Cerny (Czech Republic), Andrea Crugnola (Italy), Brendan Reeves (Australia) and Molly Taylor (Australia), were selected following an assessment process in Spain recently. As well as demonstrating their talents behind the wheel, the six had to show their level of physical fitness and ability to communicate with the media. All WRC Academy participants will be able to benefit from this type of training when the series gets underway next year. Paul Hembery, Pirelli's Motorsport Director, said: "We are delighted to have reached an agreement with North One Sport, the promoter of the WRC Academy to support this hugely exciting new initiative. "For years Pirelli has competed at the highest level of rallying, winning a total of 179 world championship events to date, but has never lost sight of the importance of helping young drivers in order to help bring forward the next generation of talent to ensure the sport continues to prosper in the future. "The WRC Academy will provide an affordable opportunity for young drivers from across the globe to compete on six rounds of the prestigious World Rally Championship in a level playing field where the most talented will shine through due to the fact they will be at the wheel of equal machinery." Pirelli will supply asphalt and gravel specification tyres to the WRC Academy, which will be contested on both surfaces. A calendar for 2011 and regulations regarding tyre quantities and approved modifications will be announced in due course.

Assignment of Prelios shares

Mon, 25 Oct 2010 19:56:11 +0200

The information contained herein does not constitute an offer of securities for sale in the United States or offer to acquire securities in the United States. The Pirelli & C. Real Estate S.p.A. securities referred to herein have not been, and are not intended to be, registered under the U.S. Securities Act of 1933, as amended (the “Securities Act") and may not be offered or sold, directly or indirectly, into the United States except pursuant to an applicable exemption. The Pirelli & C. Real Estate S.p.A. securities are intended to be made available within the United States in connection with the reorganization pursuant to an exemption from the registration requirements of the Securities Act. The business combination described herein relates to the securities of a foreign company. The business combination is subject to disclosure and procedural requirements of a foreign country that are different from those of the United States. Financial statements included in the document, if any, will be prepared in accordance with foreign accounting standards that may not be comparable to the financial statements of United States companies. It may be difficult for you to enforce your rights and any claim you may have arising under the federal securities laws, since Pirelli & C. Real Estate S.p.A. and Pirelli & C. S.p.A. are located in Italy, and some or all of their officers and directors may be residents of Italy or other foreign countries. You may not be able to sue a foreign company or its officers or directors in a foreign court for violations of the U.S. securities laws. It may be difficult to compel a foreign company and its affiliates to subject themselves to a U.S. court’s judgment. The materials attached herein may contain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may appear in a number of places in the materials attached herein and include statements regarding the intent, belief or current expectations of the customer base, estimates regarding future growth in the different business lines and global business, market share, financial results and other aspects of the activities and situation relating to Pirelli & C. Real Estate S.p.A. Such forward looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those in the forward looking statements as a result of various factors. Readers are cautioned not to place undue reliance on those forward looking statements, which speak only as of the date of the materials. Pirelli & C. S.p.A. undertakes no obligation to release publicly the results of any revisions to these forward looking statements which may be made to reflect events and circumstances after the date of the materials.

ASSIGNMENT OF PRELIOS SHARES

As previously announced on 21 October 2010, Pirelli & C. S.p.A. announces that the assignment to the ordinary and savings shareholders of Pirelli & C. of 487,231,561 ordinary Prelios (former Pirelli Re) shares held by the company, in a ratio of one Pirelli Re share for each ordinary or savings share of Pirelli & C. held, has begun today.

The extraordinary shareholders’ meeting held on 15 July has resolved upon the reduction of the share capital aimed at implementing the afore mentioned assignment of the Prelios shares, for an amount equal to Euro 178,813,982.89, corresponding to the value of the participation held in Pirelli Re to be assigned, determined on the basis of the official price of the Pirelli Re shares as of 14 July 2010. In accordance with accounting rules, Pirelli & C. has restated the liability arising from the transaction, on the basis of the official price of the Prelios shares as of today (equal to Euro 0.4337), from Euro 178,813,982.89 to Euro 211,312,328, with a change in net equity equal to Euro 32,498,345. At the same time, following the assignment of the Prelios shares, Pirelli & C. has recorded a loss in the income statement equal to about Euro 118.3 million, corresponding to the difference between the value of the liability, restated as indicated above, and the net accounting value (so-called book value) of the Prelios shares. On a consolidated basis, the impact of the assignment will be negative for about Euro 219.2 million, including the transfer to Pirelli & C.’s income statement of Prelios net losses previously recorded in equity on Pirelli & C.’s consolidated balance sheet. The Company announces that, pursuant to Article 9, paragraph 4, letter a), of the Presidential Decree no. 917 of 22 December 1986, the value of Pirelli Re shares to be assigned, for tax purposes (valore normale) – equal to the average price of the Pirelli Re shares during the month preceding the date of assignment – is Euro 0.43877.

PDF Version (46KB)

Pirelli: assignment of the Pirelli RE shares on 25 October 2010

Pirelli stars rise to mixed surface challenge in Spain

Sun, 24 Oct 2010 08:14:09 +0200

The PortAventura theme park, where the Rally de Espana service area is based, is home to holidaymakers, a bright blue woodpecker that is the park mascot and, for this weekend, around 2000 Pirelli tyres. All these tyres came to Spain because the Italian team faced a mixed-surface rally for the first time this year and at the same time hosted the Pirelli Star Driver Global Shoot Out: a joint initiative with world motorsport's governing body, the FIA, that will provide six drivers with a drive on selected rounds of the 2011 FIA World Rally Championship. The six Pirelli Star Drivers will run within the recently-announced WRC Academy, which will use identical cars running on Pirelli tyres next year, ensuring that Pirelli continues its participation on the World Rally Championship that dates back to the very beginning of the series in 1973. A total of 16 young drivers from Africa, the Asia-Pacific region, Europe, Latin America and the Middle East - including a woman nominated by the Women & Motor Sport Commission - were assessed by an international panel of judges that included Pirelli's motorsport manager Mario Isola, driver manager Timo Jouhki, rally organiser Joao Passos, noted journalist Guido Rancati and former driver Michele Mouton. The candidates were judged over an asphalt and a gravel stage, which they drove in identical cars equipped with Pirelli tyres, and they were further evaluated through a series of interviews outside of the car. The drivers selected were Fredrik Ahlin from Sweden (aged 19), Craig Breen from Ireland (aged 20), Jan Cerny from the Czech Republic (aged 20), Andrea Crugnola from Italy (aged 21), Brendan Reeves from Australia (aged 22), and Molly Taylor from Australia as well (aged 22). Pirelli's motorsport manager Mario Isola said: "It's really exciting to see the next year of Pirelli Star Drivers coming through. Once again, I think we have found some real talent. Having drivers coming from across the world for the Shoot-Out has made this a very interesting event for us. Pirelli is proud to have backed the FIA's young driver development initiative and we are delighted to see this continue into next season, maintaining Pirelli's presence in the FIA World Rally Championship and furthering our rich history at the pinnacle of world rallying." The Rallye de Espana meanwhile was won by newly-crowned seven-time World Rally Champion Sébastien Loeb, racking up his 61st career victory and his 25th on Pirelli tyres. He beat Citroën privateer Petter Solberg by 35.3 seconds while the second factory Citroën of Dani Sordo was third; breaking a remarkable pattern of one-two finishes in Spain for Loeb and Sordo that stretches back to 2006. The opening day of the Rally de Espana was run on mixed gravel and asphalt stages, with the emphasis on gravel. Crews had hard-compound Pirelli Scorpion tyres available to them for the first day and the shakedown, before being able to choose between hard and soft compound PZero asphalt tyres. In view of the weather and road conditions, all the competitors opted for hard compound tyres. Matteo Braga, Pirelli's senior WRC tyre engineer, said that the event could not have gone better for the Italian tyre company. "Our tyres worked extremely effectively under an incredibly wide range of conditions: gravel, damp asphalt following some fog in the morning, and dry asphalt in the afternoon. The wear rate was good and we had absolutely no punctures. Really, we couldn't ask for any more." As well as supplying tyres to the main WRC field as part of a three-year agreement with the FIA, the governing body of world motorsport, Pirelli's tyres are used as standard by competitors in the Junior World Rally Championship, which was wrapped up by Suzuki Swift S1600 driver Aaron Burkart* from Germany with a fourth place finish in class using RX tyres today. The JWRC category was claimed in Spain by local man Yeray Lemes at the wheel of a Renault Clio S1600 The World Rally Championship resumes for its final round on the gravel-based Wales Rally Great Britain from November 12-14. Pirelli will provide its Scorpion tyre in soft compound only to take into account the cold and damp conditions that characterise the Cardiff event. (* subject to official publication of the results by the FIA)

Pirelli sells Broadband Solutions to ADB for approximately 30 million euros

Thu, 21 Oct 2010 15:56:48 +0200

THE CONSIDERATION IS NET OF PBS RESERVES OF 8.6 MILLION EUROS ALREADY DISBURSED TO PIRELLI IN SEPTEMBER

Pirelli & C and Advanced Digital Broadcast Holdings (ADB), a company quoted on the Swiss stock exchange, today signed an agreement which entails the acquisition by ADB of the entire capital of Pirelli Broadband Solutions SpA (PBS), a company 100%-owned by Pirelli & C. The total consideration was agreed at approximately 30 million euros and is net of reserves of 8.6 million euros disbursed by PBS to Pirelli & C. last September. The price negotiated, which will be transferred at the closing, consists of 22 million euros in cash and 400,000 ADB shares, corresponding to approximately 7.2% of share capital. With regard to these shares, Pirelli & C. has undertaken a lock-up commitment for the first two months following the closing, as well as a put option for Pirelli & C. and a call option for ADB, which can be exercised within two years. The closing is expected to take place once the transaction has been cleared by the relevant Antitrust authority. PBS’s disposal is part of Pirelli’s stated strategy of focusing on its core Tyre business. Its sale to a leading industrial company is intended to ensure the continued growth and development of PBS within the broadband access systems market. Pirelli has been advised by Lazard&C and Labruna Mazziotti Segni. PDF Version (44KB)

Prelios to make its market "debut" on october 25th, 2010

Thu, 21 Oct 2010 11:16:39 +0200

PIRELLI & C. REAL ESTATE SPA ASSUMES THE NEW NAME OF "PRELIOS SPA" AFTER COMPLETING

ITS SEPARATION FROM PIRELLI & C.

ITALIAN STOCK EXCHANGE: LIST NAME TO CHANGE FROM OCTOBER 25TH

ONE OF THE PRINCIPAL REAL ESTATE MANAGERS IN ITALY AND IN EUROPE,

WITH APPROX. €15.6 BILLION1 IN ASSETS UNDER MANAGEMENT

Pirelli & C. Real Estate S.p.A. announces its change of name to "Prelios S.p.A." after completing its separation from Pirelli & C. (see today's press release issued by Pirelli & C.). Borsa Italiana (the Italian stock exchange) will, therefore, change the company's official list name from October 25th, 2010. Prelios ratifies the company's repositioning as a "pure asset management company", as stated in its business plan, and positions it, both in Italy and Europe, as one of the principal real estate management companies, with approximately €15.6 billion in assets under management, and a distinctive business model in which specialized services serve its property management and real estate enhancement activities. The Group, through its subsidiary Prelios SGR, is also leader in Italy's fund management market with some €6 billion in assets under management, most of which through 21 real estate funds. The new brand The new name of "Prelios S.p.A." was approved by shareholders in their meeting of July 15th, 2010. The new name blends the first three letters of "premium" with the word "helios", Greek for the sun. The new Prelios logo comprises lettering - specially developed for Prelios to communicate solidity and dynamism - combined with a symbol in the form of a "spark" significantly positioned in superscript. The simple and effective Prelios logo underscores how the company born out of Pirelli RE embraces and projects its inheritance towards the future. It represents the excellence, the expertise and the skills that have always been at the root of Pirelli RE’s ability to create value over time. The consequent re-branding is an opportunity to affirm and consolidate the new brand's positioning in the real estate market, while aligning it to the model focused on real estate management. PDF Version (50,3KB)

Pirelli: assignment of the Pirelli RE shares on 25 October 2010

Thu, 21 Oct 2010 10:31:59 +0200

RESULTING SHARE CAPITAL EQUAL TO EURO 1,377,878,879.78 Pirelli & C. S.p.A. announces that, following the expiry of the period provided by law, no creditors’ objections have been filed with respect to the reduction of the share capital resolved on 15 July 2010 through the assignment to the ordinary and savings shareholders of Pirelli & C. of no. 487,231,561 ordinary shares of Pirelli Re (that will assume as a consequence of such assignment the company name of Prelios S.p.A.) held by the company. The assignment of the Pirelli Re ordinary shares, in the ratio of one Pirelli Re share for every ordinary and/or savings share of Pirelli & C. held, will begin on 25 October 2010, in accordance with applicable regulations, through the intermediaries participating in the central depository system of Monte Titoli S.p.A. Therefore, starting from 25 October 2010, Pirelli & C. shares will trade on the Milan Stock Exchange ex-right of assignment. The value of the Pirelli Re shares to be assigned, for tax purposes, will be equal to the average price of the Pirelli Re shares during the month preceding the date of assignment (valore normale); therefore, the exact value will be determined following the assignment. A portion of the tax value (valore normale) of the Pirelli Re shares will qualify as a non-cash dividend which may constitute taxable income of the shareholders and will therefore be subject to taxation pursuant to the ordinary tax rules in force at the time of the assignment, depending on the status of the shareholders, the tax rules of the country of residence and other specific attributes of each shareholder. Prior to delivery of the Pirelli Re shares, the shareholders of Pirelli & C. that are assignees of Pirelli Re shares will be required to pay an immaterial amount equal to the imposta sostitutiva (substitute tax), if applicable, on the portion of the tax value (valore normale) of the Pirelli Re shares qualifying as non-cash dividend. From the date of assignment, the resulting share capital of Pirelli & C. will be equal to euro 1,377,878,879.78, divided into no. 487,991,493 shares with no par value, of which no. 475,740,182 (euro 1,343,286,427.00) ordinary shares and no. 12.251.311 (euro 34,592,452.78) savings shares. PDF Version (50,3KB)

De la Rosa on home territory as Pirelli continues testing

Thu, 21 Oct 2010 08:20:00 +0200

Spain's Pedro de la Rosa has been continuing Pirelli's Formula One testing programme on his home track, the Circuit de Catalunya in Barcelona. The two-day test marked de la Rosa's second appearance as a Pirelli test driver, following his debut in the role at Valencia just over two weeks ago. The 39-year-old tried out Pirelli's intermediate and wet tyres in Valencia, but for the Barcelona test he concentrated on the Italian firm's medium and hard compound slick tyres for the first time, refining the package that has already been formulated from previous tests. De la Rosa's work included validating the conclusions drawn from past tests in Mugello and Jerez as well as looking at different ways to make the medium and hard tyres even more effective. By the end of the two days, Pirelli was close to defining the rubber that will be taken to Abu Dhabi for the Formula One teams to try out next month. In total de la Rosa completed two days and 262 laps of running, the equivalent to around 1218 kilometres. Pirelli carried out a number of endurance runs in Barcelona, running for around 35 laps at a time, in order to verify the new tyre's consistent performance and reliability in the long term. Conditions were unusually cold for Barcelona at this time of the year, with temperatures of seven degrees centigrade in the morning. The weather warmed up to 21 degrees centigrade during the afternoon, allowing Pirelli's engineers to see how the tyres operated within a wide window of track conditions. Pedro de la Rosa commented: "It's been an excellent couple of days; I've been very impressed because I have to say that the tyres were at an even higher level than I imagined. If you look at what Pirelli has done, it's hard to believe that all this work has been carried out in such a short space of time. These Pirelli tyres have their own quite different characteristics to the current supplier that the drivers will appreciate next year and I'm confident that they will form a very competitive package. Pirelli's arrival is great news for Formula One." The 4.65-kilometre Circuit de Catalunya, the traditional home of the Spanish Grand Prix, contains long straights and varying corners, making it the ideal place to test a wide range of parameters over a distance. At the same time, Pirelli continued the development of its GP2 tyres, with Englishman Ben Hanley once again taking the wheel of the all-new GP2 single-seater. Pirelli's motorsport director Paul Hembery, who oversaw both days of running in Spain, added: "Once again, Pedro has shown what a valuable asset he is to us through his hard work and detailed feedback. He's carrying out a crucial role and the information that he has provided to us has helped us to further define the tyres that we will take to Abu Dhabi." Pirelli's next Formula One tests will take place at France's Le Castellet circuit in early November, where de la Rosa will concentrate on further development of Pirelli's soft and super-soft tyres: two of the four compounds (along with the hard and the medium) that will be offered to all of the Formula One teams next year.

Pirelli to invest in Argentina 100 million dollars by 2013

Wed, 20 Oct 2010 18:23:50 +0200

PIRELLI CONSOLIDATES PRESENCE IN ARGENTINA, TO INVEST100 MILLION DOLLARS BY 2013 IN MERLO FACILITY

ARGENTINA 2010 REVENUE SEEN AT 365 MILLION DOLLARS (+55% FROM 2009), TARGET 500 MILLION DOLLARS BY 2013

ANNUAL PRODUCTION CAPACITY TO GROW TO OVER 6 MILLION UNITS A YEAR (FROM 5 MILLION), WITH FOCUS ON SUV AND LIGHT TRUCK SEGMENTS

Pirelli is consolidating its position in Argentina and will invest 100 million dollars at its Merlo facility, in the province of Buenos Aires, by 2013. The development plan for Pirelli in Argentina, where the group’s activities began 100 years ago, was illustrated at a press conference held today in Merlo, with the participation of Argentinian President Cristina Fernández de Kirchner, the Governor of Buenos Aires Province Daniel Scioli, Industry Minister Débora Giorgi, Foreign Affairs Minister Héctor Timerman, Labour Minister, Carlos Tomada, Italian Ambassador to Argentina Guido Walter La Tella, the Mayor of Merlo, Raúl Othacehé, the Chairman and CEO of Pirelli, Marco Tronchetti Provera, the CEO of Pirelli Tyre, Francesco Gori, the CEO of Pirelli Pneus America Latina, Guillermo Kelly, and the Chairman of Pirelli Neumáticos Argentina, Franco Livini. The plan, aimed at increasing production capacity and strengthening Pirelli’s leadership in LatinAmerica, is part of the Company’s international expansion strategy which, in recent years, has seen it progressively increase its direct industrial presence in markets offering the highest rate of growth, as well as competitive costs. Of the 20 production sites that make up Pirelli’s industrial universe, seven facilities are located in South America (one in Argentina, five in Brazil, one in Venezuela) and generate 36% of Pirelli Tyre’s total sales, with an output covering all segments: car, industrial vehicles, motorcycles, agricultural and worksite machinery. The Merlo factory, where Pirelli has operated since 1951, produces over 5 million units annually for the entire car, SUV and light truck range and today accounts for 10% of the group’s total production in Latin America and 20% of car tyre production in the area. Strengthening its presence in Argentina, in particular, guarantees Pirelli an important base from which to satisfy both increasing internal market demand, which will absorb about 50% of production, and demand from significant export markets, principally Brazil and the other South American markets and the USA. Among its clients, the factory counts the major car makers Volkswagen, GM, Fiat, Ford, Peugeot, Iveco and soon also Toyota. The 100 million dollar investment foreseen by 2013, of which about 20 million dollars will be spent this year, will go to technological and quality improvements, as well as increasing capacity, which is estimated to rise to over 6 million units annually by the end of the period, an increase of over one million units from the present 5 million. In particular, the increase in production capacity will entail the doubling of production in the high value added SUV and light truck segments which typify the Argentine auto market. In the context of defining the product compounds and consistent with Pirelli’s strategy of ever greater commitment to the development and production of ‘green performance’ products, in 2011 the Company will install a new process for the production of compounds which will bring the production of low environmental impact tyres to 50% of total production. The production area today covers 48,000 square metres which, by the end of the period, will grow to 60,000 square metres. Overall, the investment plan will generate 300 new jobs over time, reaching a total of 1,200 employees compared with around 1,000 in 2010 and 900 in 2009. By the end of 2010, Pirelli’s sales in the country are expected to grow by 55% to 365 million dollars and the target for 2013 is 500 million dollars. This compares with 235 million dollars last year. After the slowdown in 2009, the Argentine car market is experiencing an increasing dynamism linked to the performance of the internal market where some leading car makers – Ford, Renault, Volkswagen, Toyota, Peugeot, Mercedes and Honda among them – are launching new projects, as well as demand from nearby markets beginning with Brazil which absorbs a large part of local production. According to data released by the national association of car producers (Adefa), moto vehicle production in the first nine months of 2010 exceeded 500,000 units, with a growth of 50% compared with the same period in 2009. At years end, according to sector estimates, production could surpass 650,000 units (513,000 in 2009). Today, car production today represents more than a third of Argentina’s industrial growth and 34% of manufacturing sector exports. Pirelli’s leadership and brand penetration in the Argentine market are proof of consumer appreciation and in 2010, for the third consecutive year, the Company won the ‘Marcas Confiables’ prize. This is awarded to companies with the greatest reliability according to studies carried out annually by the magazine Selecciones. 100 years in Argentina Pirelli’s activities in Argentina began 100 years ago and Pirelli Argentina was born in 1910 when the Group, then involved in the sale of rubber goods made in Milan, participated in the Buenos Aires Expo. At the end of 1917 “Pirelli Platense” began operations. With 24 workers, it was the Pirelli group’s first company in the Americas. In 1921, it began producing cables in the Donato Alvarez plant in Buenos Aires. A leap in scale occurred in 1929. Pirelli had already bought land on the outskirts of the capital to build an electric cable factory: the “La Rosa” plant. In the same year a small rubber factory was acquired and incorporated into the same plant. The “La Rosa” plant was further extended with the construction of a new factory and the broadening of activities to include shoes made of rubber and cloth. Having become Industrias Pirelli Saic in 1948, Pirelli Argentina acquired a factory in Bella Vista, outside Buenos Aires, in 1956 to house all its rubber processing, both for the cable sector and diversified products. In 1968, with the acquisition of 100% of the Coplan company, of which it had held 50% since 1951, Pirelli began the direct in-country production of tyres at Merlo, where the Group’s Argentine plant, after years of expansion and job creation, is still located. The centenary of the Company’s presence in the country will be celebrated today with the inauguration of the exhibition ”Pirelli 100 años de Argentina” and a gala dinner with the participation of the Italian Ambassador to Argentina, Guido Walter La Tella and representatives of the country’s industrial establishment, as well as Pirelli’s top management. PDF Version (60KB)

Pirelli ready for mixed-surface rally

Tue, 19 Oct 2010 08:14:35 +0200

Spain will play host to a world championship rally with a difference this weekend. The penultimate event of the WRC season, which takes place from October 21-24, gets underway with one day on gravel roads followed by two on asphalt, the rally's traditional surface, which will allow tyre firm Pirelli to showcase three of its products on a global stage. On Friday (October 22), crews will tackle three stages run twice using the hard compound version of Pirelli's Scorpion WRC gravel tyre. The first, the 35.94-kilometre Terra Alta stage, runs mainly on gravel, albeit with a section of asphalt measuring approximately six kilometres. Stage two, La Ribera d'Ebre, is all-gravel with the third test, Les Garrigues, half on asphalt and half on gravel. Afterwards, teams will rush to convert their cars from gravel to asphalt specification in readiness for days two and three (October 23 and 24) of the event when Pirelli, the official tyre supplier to the WRC under a three-year agreement with the FIA, motorsport's world governing body, will make available its PZero asphalt covers in soft and hard compounds. To add to the challenge, the rally's late October date could result in changeable weather conditions, which have plagued the event in the past before its move to its current home in Salou. And with road position a factor on Friday because the pacesetting drivers will be cleaning the road of the loose-surface gravel, there is a strong likelihood that a surprise leader could emerge following the opening day of competition. With road order having little impact on performance on the race track-style asphalt stages on Saturday and Sunday, a tense fight to the finish is in store. "The rally will be very open this year with a lot of drivers fighting for the victory," said Spanish hero Dani Sordo, who drives a Citroen C4 WRC for the factory team. "With the first day on mixed surfaces and the next two stages on asphalt we could see a really good and challenging rally." Matthew Wilson, who will drive a semi-works Ford Focus, added: "The format will make it a tough event but it will add some spice to the rally, which was sometimes missing in Spain. Driving on Tarmac roads with gravel tyres is never easy but it's part of the challenge." As on all rounds of the world championship, tyre usage is restricted. In Spain Priority 1 and Priority 2 drivers will receive an allocation of 12 hard compound Pirelli Scorpion tyres for gravel use, 20 hard compound Pirelli PZero asphalt tyres for warm and dry conditions and 16 soft compound Pirelli PZero Tarmac tyres for when ambient temperatures are cooler and in the event of rain. Not only is Rally de Espãna round 12 of the main world championship, the event also forms the final round of the Junior World Rally Championship for young aspiring talents in front-wheel drive machinery. Three drivers, Aaron Burkart, Hans Weijs Jr and Karl Kruuda are all in contention for the top prize. They will get a choice of Pirelli's K tyre (for gravel use) and the RE and RX tyre for the all-asphalt stages on Saturday and Sunday. Following a ceremonial start in Salou on Thursday night (October 21), the first stage is due to go live at 0853hrs local time on Friday October 22. Prior to the finish in Salou at 1503hrs on Sunday (October 24), crews will have tackled 355.30 competitive kilometres over 16 special stages. Q&A: Matteo Braga, Pirelli's senior WRC tyre engineer What will be the main challenge for Pirelli on Rally de Espãna? "The problems are not so big. Really we are just expecting a spectacular first day because of the changing surfaces. We have already used the gravel tyre on Tarmac on mainly gravel events in the past and there was no problem. Logistically it won't be so easy for the teams because they have to bring rims for gravel and asphalt conditions but, for us, the quantities are more or less the same as if we were doing a single-surface rally." Are you and your fellow engineers excited about the rally? "It's possible we will see a different result but it's also exciting that we can show three products, our Scorpion gravel tyre and our two compounds of our PZero asphalt tyre. It should also be good for the fans because it is something a bit different and they will be able to understand the differences between a Tarmac and a gravel rally." What are the stages on day one of the rally actually like? "The first one starts off on a type of vineyard gravel with a mix of corners and widths. Then, about halfway through, there's a section of smooth Tarmac lasting about six kilometres. It's on a twisty uphill section over a climb and down the other side. Then you are back on gravel, a bit like the gravel we have in Mexico. The road is narrow for a bit but then it opens out. The second stage is full gravel on quite a hard surface. The third one is 50 per cent asphalt and 50 per cent gravel. The gravel surface is made from a white stone and we've seen in places like Turkey it can be slippery when it's wet." Is it a problem using gravel tyres on an asphalt surface? "Firstly the Tarmac sections will be fun for the drivers and the fans because the cars will be sliding more in the corners. The drivers will need to consider tyre wear a little because it's a very smooth Tarmac surface. We will be using the hard compound gravel tyre, which has been designed for dry conditions." Do you expect the weather to be an issue? "It's the autumn and we've seen in Spain before that it can rain and be very slippery. But we have the soft compound tyre to help in the damp conditions, like we found on Rallye de France."

Board of Directors upward revision of 2010 Group and Pirelli Tyre targets

Thu, 14 Oct 2010 13:57:28 +0200

MEETING OF THE BOARD OF DIRECTORS OF PIRELLI & C. SPA:

REVIEW OF PRELIMIINARY DATA FOR 9 MONTHS ENDED 30 SEPTEMBER 2010

STRONG GROWTH IN OPERATING RESULTS, UPWARD REVISION OF 2010 GROUP AND PIRELLI TYRE TARGETS

PIRELLI GROUP: 2010 REVENUE TARGET ABOVE 4.9 BILLION EUROS WITH AN EBIT MARGIN OVER 7.5% (ABOUT 7% FORECAST IN JULY) AND EBIT OF APPROXIMATELY 380 MILLION EUROS

NET FINANCIAL DEBT TARGET IMPROVED TO BELOW 700 MILLION EUROS, COMPARED WITH APPROXIMATELY 700 MILLION EUROS FORECAST IN JULY

PIRELLI TYRE: 2010 REVENUE TARGET ABOVE 4.7 BILLION EURO WITH AN EBIT MARGIN ABOVE 8.5% WITH EBIT APPROXIMATELY 420 MILLION EUROS (AT LEAST 360 MILLION EUROS SEEN IN JULY)

VITTORIO MALACALZA NOMINATED VICE PRESIDENT

The Board of Directors of Pirelli & C. SpA met today and reviewed preliminary data for the nine months ended 30 September 2010, in view of the definition the new 2011-2013 three-year plan. The positive performance of Pirelli Tyre in the first nine months of the year and the present market context permit a further upward revision of 2010 targets, which had already been raised when first quarter and first half results were announced. In particular, the following is foreseen:

Pirelli & C. Group

revenue above 4.9 billion euros;
an Ebit margin above 7.5% compared with the prior estimate of approximately 7%, with an ebit of about 380 million euros;
net financial debt below 700 million euros compared with the earlier forecast of about 700 million euros.

Pirelli Tyre

revenue above 4.7 billion euros;
Ebit margin over 8.5% with ebit of approximately 420 million euros, higher than the prior ebit forecast of at least 360 million euros.

Preliminary data for the nine months ended 30 September 2010

The first nine months of 2010 confirm the positive trend seen in the first half of the year and show a marked improvement in operating results compared with the same period a year earlier.

In the first nine months of 2010, the Pirelli group registered revenue at the consolidated level of approximately 3.7 billion euros, an increase of 19% compared with the same period in 2009 (3.1 billion euros). The operating result after restructuring charges was over 300 million euros, an increase of over 65% from 30 September 2009 (182.4 million euros). The Ebit margin rose to over 8% from 5.9% in the first nine months of 2009.

For Pirelli Tyre, volume growth and a positive price/mix contribution, combined with internal efficiencies, more than compensated for the impact of higher raw material costs and other production factors, with a consequent improvement in the operating results.

In the first nine months of 2010, Pirelli Tyre’s operating result, after restructuring charges, climbed to more than 330 million euros, an increase of approximately 50% from 222.7 million euros on 30 September 2009, and equal to 9.4% (7.5% in the first nine months of 2009) of revenue of approximately 3.5 billion euros (+20% from 2,958.6 million euros on 30 September 2009).

The group’s net financial debt on 30 September 2010 was approximately 700 million euros compared with 696.9 million euros on 30 June 2010 (528.8 million euros at end December 2009).

Vittorio Malacalza nominated vice president

The Board of Directors also proceeded to nominate Vittorio Malacalza as the company’s Vice President, already co-opted during the Board meeting on July 29.

***

Pirelli will present its new three-year plan for the period 2011-2013, with its vision of the scenario to 2015, to the financial community on 4 November 2010.

PDF Version (46KB)

Pirelli: the Board of Directors approves financial statements as of 30 june 2009

Andreucci claims another Italian title with Pirelli

Mon, 11 Oct 2010 11:13:52 +0200

Peugeot Italia driver Paolo Andreucci claimed his fifth Italian Rally Championship, and the fourth title that he has taken with Pirelli, on the Costa Smeralda Rally in Sardinia last weekend. The Italian made sure of his title with one round of the series left to go by finishing a safe third on the demanding gravel roads of the 'Emerald Coast'. Peugeot driver Kris Meeke won the rally in front of Skoda's Jan Kopecky: making it an all-Pirelli podium. Andreucci, who is also one of Pirelli's development drivers, said that one of the key forces behind his second consecutive Italian title with Pirelli was the performance of the tyres. "Pirelli has played a huge role in this latest success, because for the past two years we have been extremely competitive everywhere," said the 45-year-old Italian. "The reason why we have won the title again this year is our consistent strength. With Pirelli, we've won on every surface, gravel or asphalt, whatever the conditions. It takes a special type of tyre to be able to do that, but it's come as the result of all the hard work we have put in together for a very long time now. I'm absolutely delighted." Andreucci, co-driven as always by Anna Andreussi, counts his victory with Pirelli on the Sanremo Rally last month as one of the key moments that sealed the championship. "That was really one of the most difficult events of the year, because the conditions were constantly changing between wet, damp and dry asphalt within a big temperature range," he added. "Also, we faced some of the toughest opposition that we have ever seen, because we were up against the top stars of the Intercontinental Rally Challenge, where the level is extremely high." Nonetheless, Andreucci vanquished the opposition to claim Pirelli's second major IRC victory of the year, following Ford driver Mikko Hirvonen's win on the world-famous Monte Carlo Rally in January. As another successful rally season draws to a close for Pirelli, the Italian rubber has underlined not only its performance but also its versatility, by triumphing with a wide variety of different cars and drivers on all sorts of surfaces. "On behalf of everyone at Pirelli, we'd like to offer Paolo and Peugeot Italia our most sincere congratulations," said Pirelli's motorsport director Paul Hembery. "The way that Paolo has driven throughout the season just goes to show what a true champion he is. We're very proud of our contribution to his fantastic achievement, and we look forward to more success in future on the world's rally stages - both with Paolo and all the many other drivers supported by Pirelli." ers supported by Pirelli."

Pirelli gets wet in Valencia

Wed, 06 Oct 2010 08:29:00 +0200

Pirelli's pre-season tyre test programme has entered its latest phase with the Italian company's wet and Valencia circuit in eastern Spain. The test also marked the first time that Spanish driver Pedro de la Rosa drove for Pirelli, having been announced as test driver last month. Following on from work carried out to define both the compound and structure of Pirelli's slick tyres, which will be offered to Formula One teams in four different variants next year, the focus now switched to tyres for wet conditions. Valencia, a well-known Formula One testing venue that is also famous for hosting motorbike races, was chosen because of its technical and compact nature that allowed Pirelli's engineers to assess every aspect of the tyre's performance. In order to make the track wet, it was sprayed with water during both days of the two-day test: a light covering to check the performance of the new intermediate tyres and then a more dense covering to try out the full wet rubber. Although conditions remained warm and dry in Valencia, with ambient temperatures in the region of 24 degrees centigrade, it is easier to test wet tyres when it is not actually raining as the water on the track dries more consistently. This enables accurate data to be recorded: an essential priority when testing. Driving last year's Toyota TF109 used by Pirelli for testing, de la Rosa covered just over 650 kilometres during the course of the two days, having started his programme running on slick tyres in order to establish a benchmark time. The 39-year-old Spaniard was recruited because of his recent Formula One experience and renowned testing abilities, which allowed him to give plenty of useful feedback to Pirelli's engineers. Pirelli's motorsport director Paul Hembery commented: "As we were running our intermediate and wet tyres for the very first time, effectively our programme was starting from scratch once more. We worked through our schedule exactly as planned, and we were able to get an initial impression of our performance in wet and drying conditions. This has enabled us to identify the areas in which we are strong and the areas that we need to develop further, which is always the aim in testing. It's been great working with Pedro de la Rosa, whose experience has given us a well-informed perspective on the characteristics of our tyres. So far our schedule is going exactly to plan, and we look forward to continuing our work at what is a very exciting time for us during the next test sessions as well as back at base in Milan." De la Rosa added: "It's a real pleasure for me to be working with Pirelli this year, and I'm delighted to have finally had the chance to try out these tyres. We completed all the work we wanted to do during this initial session, and now we have a clearer idea about future avenues for development." Pirelli also used the Valencia test to carry out development of its new GP2 rubber, with Giorgio Pantano driving the new Renault-powered single-seater. Pirelli's next tyre test will be at the Circuit de Catalunya in Barcelona at the end of the month.

Magny-Cours - Round 13 - Race Report

Sun, 03 Oct 2010 19:00:03 +0200

Under especially splendid French weather where track temperatures reached 30°C, the conditions were adequate for Pirelli's new compound Qualifier, with which Crutchlow put his Yamaha on pole recording new Best Lap of 1'37.699 in the third session. Many SBK riders performed well in the two races with the new "A" soft rear tyre solution (SC1) and one of the three available front solutions, among which were the "B" and "C" (new SC1 and SC2) as well as the "A" reference tyre for 2010. Nearly the entire SSP grid chose the "A" front and "A" rear tyre solutions, which correspond to the new SC2 compound Diablo Supercorsa pair. Pirelli closes the 2010 WSBK racing season with excellent development results: five new Diablo Superbike solutions from SBK, three new Diablo Supercorsa solutions from SSP and one new size from Stk1000 (200/55R17) have been confirmed for Pirelli's racing range for 2011. With the recent championship title awarded to Aprilia, SBK has now seen five manufacturers earn the prestigious title of Superbike World Champion since Pirelli became sole tyre supplier in 2004, while in all the 16 years prior, only three manufactures obtained the title. Pirelli congratulates the 2010 Pirelli Best Lap award winners, Cal Crutchlow (Yamaha) and Kenan Sofuoglu (Honda) and all the riders competing in this season for their impressive efforts and valuable feedback.

Loeb takes WRC crown on Pirelli Tyres

Sun, 03 Oct 2010 09:47:02 +0200

Sébastien Loeb had double cause for celebration after reaching the finish of Rallye de France on Sunday afternoon with an advantage of 35.7 seconds. Not only did the 36-year-old from France capture his 60th victory at world championship level in front of hundreds and thousands of spectators, he also secured his seventh world title, the 11th by a driver using Pirelli tyres. While Loeb's triumph on his home rally was widely considered a foregone conclusion before Thursday's ceremonial start in Strasbourg, the tricky stage conditions put the onus firmly on survival as the rain-hit asphalt tests of the Alsace region became coated in mud and gravel dragged onto the road by competing crews taking 'cuts' through corners.. It meant Pirelli's PZero asphalt tyre, fitted to all four-wheel drive cars competing on the event, was subjected to extremely demanding conditions, which intensified when the rain subsided on Saturday morning and there was no precipitation to clean away the surface dirt and debris. But the tyre passed the test with flying colours and was widely praised for the level of grip it offered, despite the treacherous nature of the bulk of the route, which covered 352.88 kilometres.. “For sure this is really special and it‟s incredible for me to win my seventh world title here in my home town,” said Loeb. “It has been a very impressive rally but very difficult. There has been a lot of support and I really did not expect this. With Dani [Sordo] finishing second, Citroën has won the manufacturers title and me my 60th world championship rally. Sure I led from the start but the conditions never made it easy and I really had to concentrate. Fortunately my car and the tyres were always very good and never let me down.” Jari-Matti Latvala, who produced arguably his best performance on asphalt by going fastest on three stages in his factory Ford Focus WRC and finishing fourth overall, said: “The Pirelli tyre worked extremely well in very bad conditions. It was so difficult with so much muck on the road but we never had a problem with grip, particularly under braking for the difficult corners it was always very good.” Due to the slippery conditions, competitors opted to use the soft compound version of the Pirelli PZero tyre throughout the event. The compound type is designed to provide optimum road holding in lower ambient temperatures and when the stage surface is damp and slippery. “The mud, the rain and the cold temperatures made the conditions the most difficult we have ever experienced on a Tarmac rally,” said Pirelli's senior WRC tyre engineer Matteo Braga. “There was a lot of mud and small stones dragged onto the road and the stage surface, which was already very inconsistent, became even more difficult for the drivers. Fortunately the PZero tyre provided good grip and there was never any problem of wear when it stopped raining and the road began to dry". “There were quite a few problems of broken rims through drivers taking big „cuts‟ resulting in tyres losing their air. But there were several cases when drivers came back to service with badly damaged rims but with all the air still in the tyre. This demonstrates the strength of the sidewall construction we pioneered since we became the official tyre supplier to the WRC in 2008.”. As well as counting for round 11 of the 13-event World Rally Championship, Rallye de France also formed the penultimate rounds of the Super 2000 and Production world championships, which use Pirelli tyres as standard and therefore underline the performance and efficiency of the Italian rubber on a wide range of machinery.. Patrik Sandell, driving a Skoda Fabia S2000, took the honours in the SWRC category with Armindo Aráujo winning the PWRC in his Mitsubishi Lancer Evolution X. French wildcard entrant Jeremi Ancian completed a clean sweep of the support championship for Pirelli when he won the Junior World Rally Championship division in his Suzuki Swift S1600.. Rallye de France was the fifth event of the season for the five Pirelli Star Drivers Nick Georgiou, Peter Horsey, Hayden Paddon, Alex Raschi and Ott Tänak. The programme, a joint initiative between Pirelli and the FIA, motorsport's world governing body, gives promising talents from around the world the chance to compete on six WRC events in identical Mitsubishi Lancer Evolution Xs. Tänak was the leading finisher after an electrical fault meant Paddon hit trouble on Friday's opening leg.. The World Rally Championship heads next to Spain for the penultimate round of the season from October 21-24. The event has a new format for 2010 with Friday's opening day using gravel stages with Tarmac sections. Pirelli will provide its gravel-specification Scorpion tyre for day one and its PZero asphalt tyre for Saturday and Sunday, when the event uses all-asphalt tests.. Before then, Paolo Andreucci, driving a Pirelli-shod Peugeot Italia 207 Super 2000, can clinch the Italian Rally Championship for a fifth time when he contests Rally Costa Smeralda, which uses the gravel roads of the Gullura region of Sardinia from October 7-9.. Pirelli’s world rally champion drivers 1980: Walter Röhrl (Fiat 131 Abarth) 1981: Ari Vatanen (Ford Escort RS1800) 1987: Juha Kankkunen (Lancia Delta HF 4WD) 1990: Carlos Sainz (Toyota Celica GT-Four) 1992: Carlos Sainz (Toyota Celica Turbo 4WD) 1995: Colin McRae (Subaru Impreza 555) 2001: Richard Burns (Subaru Impreza WRC) 2003: Petter Solberg (Subaru Impreza WRC) 2008: Sébastien Loeb (Citroën C4 WRC) 2009: Sébastien Loeb (Citroën C4 WRC) 2010: Sébastien Loeb (Citroën C4 WRC)

Pirelli: Price Increase in the United States for Car and Light Truck Tyres

Wed, 29 Sep 2010 16:42:26 +0200

Milan, 28 September 2010 – Due to increasing raw material costs, Pirelli will raise prices in the United States for all passenger and light truck tyres. The increases will be up to 7%, effective 1 December 2010. PDF Version (38KB)

Pirelli announces Pedro de la Rosa as Test Driver

Mon, 27 Sep 2010 13:48:04 +0200

Spanish driver Pedro de la Rosa will replace Nick Heidfeld as Pirelli's official test driver, as the legendary Italian firm gears up for its Formula One return. Heidfeld was recently appointed as a race driver for Sauber over the remainder of this season after carrying out the initial tests with Pirelli's new Formula One tyres. He was replaced by Frenchman Romain Grosjean at Monza last week, who will continue to test for Pirelli alongside de la Rosa. The 39-year-old de la Rosa has raced for Sauber this year and was for many years McLaren's third driver, meaning that he has a wealth of Formula One experience from both the past and present. The Spaniard was confirmed in his new role at a press conference near Istanbul, held to mark 50 years of Pirelli's presence in Turkey, where all the Formula One, GP2 and GP3 tyres for next year will be produced at a state of the art facility in Izmit. "I'm really pleased to be joining Pirelli," said de la Rosa. "Tyre testing is something that I have always enjoyed as it is a very big challenge, especially in Formula One. The information you can get from telemetry and sensors is valuable, but nothing replaces the individual feeling of a driver with new tyres so I hope I can be a real asset to Pirelli. There's not a lot of time left and a huge amount of work to do, but I'm very much looking forward to it and I am sure that our collaboration will be a success. A lot of useful work has been done already and now we have the opportunity of taking it forward." Pirelli completed two days of testing at Monza in Italy last week, which concentrated on defining the construction of the new Formula One tyres. Grosjean completed a number of long runs consisting of 30 to 40 laps each, in order to check the durability and consistency of the tyre in warm conditions. Thanks to its fast straights and aggressive kerbs, Monza is an extremely demanding circuit for tyres, which stood up to the new challenge very well. At the same time, Giorgio Pantano continued to test the new GP2 car, which will also run on Pirelli PZero tyres next year as well as its feeder GP3 Series. Pirelli's Motorsport Director Paul Hembery, who personally oversaw the Monza tests, said: "Romain jumped in to do some durability testing and did an excellent job. The objective of this test was to confirm the structural specification of the tyres we will use for the first time at the test in Abu Dhabi, and we now move on to working on our rain tyres and compound definition. Moving forwards, we will also be joined by Pedro de la Rosa, who has the benefit of having the most recent Formula One experience and is a renowned tester. So far, everything has gone according to plan and we're pleased to report that we are only about a second per lap off the times of our predecessors, which is a great achievement." Pirelli's next round of Formula One tests will take place in Spain in early October, where de la Rosa will take the wheel of the Toyota TF109 for the first time.

Imola – Round 12 – SBK Race report

Sun, 26 Sep 2010 18:59:00 +0200

Variable conditions seen during Superpole sessions on Saturday left surprising results when the factory Kawasaki took its first pole since 2007 on Diablo Rain tyres in the semi-wet final session. On race day we saw an unexpected 41°C track temperature, forcing many teams to change their setups from the previous two days. With over 4100 tyres transported to this last Italian round including 2 new front and 2 new rear solutions for SBK and 2 new rear tyres for SSP developed in mid-season tests, Pirelli’s Diablo Superbike and Diablo Supercorsa solutions for Imola were ample enough to handle all weather conditions. Race 1 proved to be 4,5 seconds faster and awarded Haslam (Suzuki) with both the Pirelli Best Lap and lap record of 1’48.966. Haga (Ducati) even put in his best lap of the race on the last lap to join the two private Ducati bikes of Checa (Althea Racing) and Lanzi (DFX Corse). Race 2 saw a similar performance to last year, with Checa (Ducati) utilizing the new “B” SC1 and “A” SC0 race-winning solutions to find a double victory and to secure his seventh Pirelli Best Lap / lap record of 1’48.877. With the entire grid on the new DIABLO SUPERBIKE SC0 rear tyre, Pirelli may begin confirming solutions like this one for our 2011 production range of tyres. Sincere congratulations to Max Biaggi and the Aprilia Racing team for their first FIM SBK World Championship, accomplished less than 2 years after the start of the Italian brand’s renewed WSBK project.

Andreucci triumphs in Sanremo with Pirelli

Sat, 25 Sep 2010 08:20:01 +0200

After winning in Monte Carlo at the start of the year, Pirelli has also won the prestigious Rallye Sanremo, round 10 of the Intercontinental Rally Challenge. Paolo Andreucci, driving a Peugeot 207 Super 2000, triumphed today on the demanding asphalt event, held on narrow and twisty mountain roads in Italy's Imperia province from September 24-25. In addition to the testing terrain, Andreucci and Pirelli also had to master changeable weather conditions. While the rally finished in bright sunshine, rain fell over the rally route on Friday afternoon and again prior to the gruelling 44-kilometre Ronde stage, which took place under the cover of darkness on Friday night and is one of the longest used in international rallying. Armed with a supply of Pirelli's PZero tyres, Andreucci had little trouble negotiating the slippery mountain passes as he flew to victory alongside co-driver Anna Andreussi. A total of 32 Super 2000 cars were entered on the event: a record for Rallye Sanremo. "Our Pirelli tyres performed faultlessly in a hugely wide range of conditions," said Andreucci. "Whether it was damp or dry asphalt, we managed to have a consistent level of traction and grip, which was a key to victory. The flexibility of the Pirelli rubber meant that even when our tyre choice was not perfect, we were able to perform at our best. This goes to show the effectiveness of Pirelli's products under all circumstances. Everyone at Pirelli has worked very hard to refine the tyre specification, and this is the well-deserved result." Andreucci and Andreussi have reinforced their lead of the Italian Rally Championship with this latest victory and they are now in a position to lift the title on the next round, the Costa Smeralda Rally, in October. Unlike the World Rally Championship, which Pirelli supplies on an exclusive basis under a three-year agreement with the FIA, world motorsport's world governing body, IRC regulations permit open tyre competition. It means Pirelli is able to test its products against other rival manufacturers. And for the second time this season, Pirelli has beaten the opposition to follow up its victory on Rallye Automobile Monte-Carlo in January when Mikko Hirvonen took victory in a Pirelli-shod Ford Fiesta S2000. Pirelli also claimed two more Italian titles with a round to spare: the Italian Junior Rally Championship with Albertini-Fenoli (Renault Clio R3) and the Italian Production Car Championship with Perego-Pizzutti in a Mitsubishi Lancer Evolution. Terenzio Testoni, Pirelli's Motorsport Product Manager, concluded: "It's been another excellent performance from Pirelli in conditions that were far from easy. The opposition was stronger than it has ever been and conditions were extremely variable, but once again Paolo made the right choices to ensure yet more success for Pirelli."

Pirelli set for all-new French Rally

Fri, 24 Sep 2010 14:34:14 +0200

France's all-new world championship qualifier, which takes place in the country's Alsace region from September 30-October 3, is set to be a Tarmac rally like no other with inconsistent stage surfaces, narrow and wide sections and temperature variation all adding to the challenge facing the competitors, more than 60 of whom will use Pirelli's PZero asphalt tyre. Based in Strasbourg close to the border with Germany, the bulk of the event's 20 special stages are contained within hilly forest areas with the exception of Sunday's runs: a 24-kilometre test through the Bitche Camp military training area, and a 4.10-kilometre blast through Haguenau, Sebastien Loeb's home town. Loeb, who can land his seventh world title by winning the event, is expected to dominate in his Citroen C4 World Rally Car. An established asphalt specialist, the last time Loeb was defeated on a pure Tarmac event was in Spain in October 2004 when he retired due to a mechanical problem. "We saw in Bulgaria in the summer, a new rally for everybody, that Sebastien was a little bit ahead of everybody," said Sven Smeets, team manager of the Citroen factory squad. "And we really expect him to be up front fighting for the victory in France where he can bring the championship home. There will probably be a little bit of pressure because it's his home town and people expect him to win but we know his skills on Tarmac and Sebastien is never really under pressure." Pirelli, the official tyre supplier of the WRC under a three-year agreement with the FIA, motorsport's world governing body, will supply the hard and soft compound variant of its PZero tyre to all crews in four-wheel drive machinery. The hard compound is designed for hot and dry conditions with the soft version better suited for cooler temperatures and a damp stage surface. Matteo Braga, Pirelli's senior WRC tyre engineer, says he expects tyre compound choice to have an impact on the final result. "Although we expect Sebastien Loeb will be world champion, we know that the weather will be less easy to predict and this will influence the choice of tyre compound," said Braga. "Okay, we have seen that the soft compound PZero tyre works well in warm and dry conditions but, in France, there is a chance of some rain so it's likely we will see more soft compound tyres being used on this event. The quantities available have been selected with rain in mind so there is no problem with supply, the only concern is if it rains very hard, which it can do in the mountains." The tyre regulations set out by the FIA don't allow for a specific 'rain' tyre, nor do they allow the insertion of artificial 'cuts' into the tread pattern to provide extra grip. The measures were all designed to ensure the tyre could be used on a wide variety of asphalt and in different conditions to ultimately control costs. "It means drivers will face a compromise if it rains and maybe won't be able to push at 100 per cent," continued Braga. As with all rallies using mountainous stages, there is a constant risk of changeable weather conditions and localised precipitation. But even if it doesn't rain, the stage surface is likely to be slippery in places according to George Black, the Ford team's tyre technician. Black has driven over the competitive route and described the problem of stage "pollution", adding: "Because the rally is mainly in forest areas you have a problem of pollution with pine needles and leaves falling like snow on the road. It puts moisture on the ground and with the temperature quite cool in the morning it's going to be quite a challenge. Apart from the Bitche Camp stage, no stage on the rally has one consistent surface with smooth, coarse and bumpy Tarmac, even gravel in some places, all featuring. It will compromise car set-up and make for a difficult rally." Black also pointed to the variation in stage width as being another factor on the event and singled out Friday's 24.5-kilometre Grand Ballon stage, which reaches a peak of 1424 metres. "You've got single-width tracks and then when you approach the ski resort the road is very wide so you can straight-line lots of the corners. Then it's narrow again through the trees and bumpy like hell. You will also have a big variation in temperature from start to finish." P1 and P2 drivers can select from a quantity of 24 hard compound PZero tyres and 22 soft compound PZero covers on Rallye de France. However, they cannot exceed 36 tyres for the entire event. All other four-wheel drive crews can select from 20 hard compound tyres and 16 soft compound tyres but are restricted to a total of 25 for the duration of the rally. Crews in the Junior World Rally Championship will use the RX tyre, available in 16- and 17-inch diameter. Rallye de France is the fifth event of the season for the Pirelli Star Driver programme, a joint initiative between Pirelli and the FIA. It gives the opportunity for five promising young talents, Nick Georgiou, Peter Horsey, Hayden Paddon, Alex Raschi and Ott Tanak, to contest six rounds of the World Rally Championship in identical Pirelli-backed Mitsubishi Lancer Evolution Xs. As well as counting as round 11 of the main WRC, Rallye de France is also round eight of the Production Car World Rally Championship, for two-litre turbocharged Group N cars, and round nine of the Super 2000 World Rally Championship, which uses normally aspirated two-litre cars. Pirelli supplies its hard and soft compound PZero tyres to both support championships, thereby underlining the performance and efficiency of the Italian rubber on a wide range of machinery. Rallye de France features 351.80 competitive kilometres over 20 special stages. Action gets underway at 0843hrs local time on Friday October 1 with the final stage around Haguenau town centre set to begin at 1336hrs on Sunday October 3. Pirelli's French record France has moved its world championship qualifier from the Mediterranean island of Corsica to the mainland for 2010, when the Italian firm will secure its 13th victory at WRC level on French soil. Here is a list of Pirelli's previous winners in France: Markku Alen: 1983, 1984; Jean-Claude Andruet: 1974; Bernard Darniche: 1977, 1978, 1981; Sebastien Loeb: 2008; Colin McRae: 1997, 1998; Sandro Munari: 1976; Carlos Sainz: 1991; Petter Solberg: 2003

Board meeting for 9-month results and new Industrial Plan brought forward to 3 November

Fri, 24 Sep 2010 12:21:13 +0200

Industrial Plan vision to 2015 and targets for 2011-2013 to be presented 4 November Milan, 24 September 2010 - Pirelli & C. SpA announces that its Board of Directors will meet to review intermediate results for the nine months ending 30 September 2010 on Wednesday 3 November 2010 and not 4 November as previously announced. The date was changed to allow for the illustration of the Industrial Plan, vision to 2015 and targets for 2011-2013, to the financial community during the presentation scheduled for 4 November. PDF Version (27KB)

Pirelli inaugurates its "factory of champions" in Turkey

Thu, 23 Sep 2010 12:06:13 +0200

Revenues in Turkey seen at 500 million euros in 2010, an increase of over 25% from 2009

140 million euros invested in Izmit facility in the last 10 years, new investment of 30 million euros planned for 2011

With 8 million units produced a year, Izmit is Pirelli’s biggest plant

50,000 tyres will be produced for F1 in 2011

Pirelli, present since 1960, celebrates 50 years’ activity in Turkey

Istanbul, 23 September 2010 – Pirelli today inaugurated the “Factory of Champions” at Izmit, the plant where the group will produce tyres for all the Formula One teams for the 3-year period 2011-2013. The Izmit facility, which this year celebrates 50 years’ activity, has housed the Motorsport tyre production line since 2007 and, in synergy with the Research and Development centre in Milan, will become the heart of Pirelli’s Formula One activities. Producing 8 million tyres for cars, trucks and motorsport each year, Izmit is the Pirelli factory with the greatest unit output of all. The group has invested 140 million euros there over the last 10 years and plans to invest a further 30 million euros in 2011 to support expansion in Turkey and nearby emerging markets. The Formula One tyre division was inaugurated with a press conference at the plant with the participation of Nihat Ergun, Turkey’s Minister for Industry and Commerce, Gianpaolo Scarante, Ambassador of Italy in Turkey, Marco Tronchetti Provera, Chairman and CEO of the Pirelli Group, Francesco Gori, CEO of Pirelli Tyre, Andrea Pirondini, CEO of Turk Pirelli Lastikleri and Metin Ar, Chairman of Turk Pirelli Lastikleri. Pirelli in Turkey Inaugurated in 1960, the Izmit facility produces tyres for the car and industrial segments, as well as Motorsport. It supplies key European markets (including Turkey, ltaly, Germany, France, Spain, Greece, Switzerland, Austria, United Kingdom) and the Middle East, as well as car makers such as Mercedes, Jaguar, Fiat and Renault. The facility, which also houses a steel cord factory in its 25th year of activity, covers an area of 340,000 square metres and employs 1,800 people. Pirelli expects 2010 revenue in Turkey of over 500 million euros, an increase of over 25% compared with 2009, and will strengthen its position further with new investments of 30 million euros in 2011, having already invested 140 million euros in the last 10 years. Turkey and Formula One With the launch of the Formula One division, Pirelli has broadened its offering of automobile sports tyres. In 2011, the Company will produce a total of 200,000 competition tyres, 50,000 of these for Formula One and 70,000 for the GP2 and GP3 championships, for which Pirelli is the sole supplier. The remainder will go to the 60 international automobile road and track competitions for which the Milan-based tyre maker is the exclusive supplier, as well as prestigious single brand championships such as the Ferrari Challenge, Lamborghini Super Trofeo and Trofeo Maserati. In total, Pirelli’s automotive sports range counts 200 types of racing tyres, including rally tyres. Formula One tyres will be produced exclusively at the Izmit plant on the basis of simulation models, compounds and structures developed by Pirelli Research and Development, which counts over 1,000 engineers and technicians. The Formula One line, which covers an area of 15,000 square metres, will run the most advanced sports tyre production machinery. The Izmit facility, in synergy with Pirelli’s centre for the preparation of sports tyres in Burton on Trent (United Kingdom), will also be the centre of all Formula One logistics activities. First tests The new PZero Formula One tyres, developed on the basis of Pirelli’s extensive experience in road and track automobile competitions, have been tested, beginning in mid-August, with success on tracks in Mugello (Italy), Le Castellet (France) and Jerez (Spain) and have recently undergone new tests on the Monza (Italy) circuit. In Mugello and Le Castellet, structures and profiles were tested to guarantee maximum adaptability, continuity and homogeneity of tyre performance. In Jerez and Monza, testing focused on optimization of the compounds, of which there will be six: four “slicks” for dry conditions, one rain tyre and one intermediate for light rain. Track testing was done on a Toyota TF 109, used in last season’s Grand Prix, driven in Jerez by Germany’s Nick Heidfeld. Final testing is expected to take place in Abu Dhabi in November after the Grand Prix. “The tests went beyond my own expectations and I believe Pirelli is at a good point in the development of the tyres,” said Heidfeld. “The Pirelli team, to whom I think I gave some useful advice, has from the beginning been on the right track in terms of supplying all Teams with reliable and safe tyres to ensure a great show and enable each driver to express their own driving style”. Formula One and sustainability In line with the Pirelli Group’s Green Performance strategy, aimed at developing products and solutions that combine maximum performance and safety with respect for the environment, Formula One production was also inspired by criteria of environmental sustainability. In particular, as in all Pirelli competition tyres, the compounds for the PZero are free of highly aromatic oils. Further, the processes used in Izmit are based on energy and water efficiency and the reduction of dangerous emissions like carbon dioxide. Special attention has been given to the re-utilization of production remnants and used tyres. The waste handling protocol calls for the recycling of used F1 tyres for either the generation of new primary material or energy production. Pirelli’s attention to the issue of sustainability is also shown by its recent confirmation in the Dow Jones Sustainability STOXX and Dow Jones Sustainability World indices, where the Company has been the leading company in the “Autoparts and Tires” sector for four consecutive years. Pirelli’s 50 years in Turkey The inauguration of the Formula One division coincides with celebrations for the 50^th anniversary of Turk Pirelli’s activities which will include, among other things, a photographic exhibition which opened yesterday at Istanbul’s Ciragan Palace. The collection of images recounts the history of the Company’s industrial presence in Turkey and its technological evolution. The official opening was attended by local authorities and leading exponents of Turkey’s business and cultural communities, including the director Ferzan Ozpetek and singer Sezene Aksu

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Pirelli encouraged by latest tests at Jerez

Thu, 16 Sep 2010 16:57:05 +0200

As Pirelli gears up towards its first Grand Prix in 20 years next season, the intensive test programme has continued at Jerez in southern Spain with Nick Heidfeld at the wheel of the Toyota TF109 used for Pirelli's pre-season development. Giorgio Pantano also drove the new GP2 car at Jerez, which will run on Pirelli rubber from next year as well. The 4.43-kilometre Jerez circuit has hosted both the Spanish and European Grands Prix in the past, and it is a popular venue for Formula One testing due to its technical configuration and year-round warm weather. Conditions on the first day of Pirelli's test were extremely hot, peaking at 38 degrees centigrade with bright sunshine. The second day was cooler and more cloudy, with a high of 34 degrees centigrade. The Jerez circuit contains quite a wide variety of corners, ranging from slow curves to some medium to fast bends. The layout puts particular emphasis on rear tyres, which have to work hard to supply the best traction throughout an ample range of speeds. While Jerez does not result in especially high top speeds, every aspect of a car's performance is comprehensively tested there. Heidfeld completed nearly 100 laps of running on the opening day and a similar distance on day two. The objective of the tests was to finalise development on tyre construction, prior to the next test in Monza in a week's time when most of the work in this area will be completed. At the same time, Pirelli's development engineers also tried out a range of different compounds, as they focus on preparing the four slick options that will be offered to all the Formula One teams next year. At the test in Monza next week, former Renault Formula One driver Romain Grosjean will drive for Pirelli for the first time. Heidfeld is being released from his contract following the announcement that he will drive for Sauber for the rest of this season. Pirelli's Motorsport Director Paul Hembery commented: "We'd like to thank Nick for his very valuable contribution to our tyre development programme and we wish him all the best for the future. In order to avoid favouring any individual team, we have jointly decided to release Nick from his contract and now we have chosen Romain to test for us in Monza. He's packed a lot of experience into a short space of time, including all our GP3 tyre development, so I'm sure he'll be able to give us some very useful feedback. The tests here at Jerez have gone extremely well and we completed all the work that we planned over the two days. Now we move onto Monza, where our task will be to finalise the construction before we focus further on compounds."

Pirelli concludes thrilling GP3 season

Mon, 13 Sep 2010 09:10:21 +0200

One chapter closes and a new one opens for Pirelli: the inaugural GP3 season came to an end this weekend in Monza, the heartland of motor racing in Italy, and the famed Italian tyre manufacturer now looks forward to supplying Formula One, GP2 and GP3 at the pinnacle of single-seater racing from next year. The new eight-round GP3 Series - which took place exclusively at Formula One race meetings this year - was designed as a stepping-stone to GP2, which in turn has proved to be the established route to Formula One, with 11 drivers graduating in recent seasons. The qualifying session at Monza, with its two supplementary points, crowned the first GP3 Series champion: Mexico's Esteban Gutierrez, driving for the ART team from France - which also clinched the teams' title, running on Pirelli's 13-inch PZero tyres. Pirelli used three varieties of tyre over the course of the season: soft, medium and hard compounds, as well as a wet tyre that also saw plenty of use during the second half of the year. The tyres all proved to be durable yet consistent, although part of the brief from the GP3 Series organisers was to build in a degree of artificial degradation, in order to teach the 30 young drivers the art of looking after their tyres in a race situation. With identical 280-horsepower Renault-engined cars and control tyres, the emphasis in GP3 is firmly on driving talent: true to Pirelli's motorsport philosophy of nurturing the stars of the future. Pirelli brought medium compound PZero tyres to Monza, which were also used at the last round of the series in Belgium. Monza is Pirelli's home race, located just half an hour from the company's headquarters, and the circuit contains a number of unique challenges for tyres thanks to its rapid straights and raised kerbing on the chicanes. The circuit is a legend in motorsport history thanks to its famous corners such as the Parabolica and also the surviving sections of the atmospheric Monza banking, which was last used for the 1000km sportscar race back in 1969. Gutierrez dominated the weekend, setting fastest time in practice and qualifying to clinch the title before crowning his achievement with a hard-fought win in race one on Saturday afternoon. Sunday morning's second race was claimed by Robert Wickens, in a sensational drive from fifth on the grid. Pirelli's racing manager Mario Isola commented: "We've enjoyed an exciting end to what has been a fascinating inaugural season of the new GP3 Series, in which Pirelli was proud to play a key role as we returned to circuit racing for the first time in 20 years: the first step of an engagement that we will maximise next year. Our medium-compound rubber performed very well at Monza, which is an extremely demanding circuit for the tyre construction because of both high speeds and the aggressive kerbing. Esteban is a truly deserving champion who has made his mark on the series from the very start of the year; we wish him yet more success on our tyres for the future and we already look forward to supplying GP3 again with some new products next year." While the GP3 season is now over, Pirelli has a hectic schedule planned for the coming months as it test the new generation of Formula One and GP2 tyres that will be used exclusively at Grand Prix weekends next year.

World MX – Round 15 – Fermo (IT)

Sun, 12 Sep 2010 20:15:12 +0200

The Grand Prix of Italy further served to highlight the dominance of the Pirelli Scorpion MX tyre after winning the MX1 World Championship at the Grand Prix of Brazil, the MX2 title and the Veteran’s World Cup two weeks later at Lierop for the Grand Prix of Benelux and then finally the fourth crown with the Women’s World Championship thanks to the efforts of German Stephanie Laier in Italy. Victory in the premier class on the day belonged to Clement Desalle, who also confirmed the runner-up position in the MX1 series. WEATHER Sunny TEMPERATURE 25° HUMIDITY 63% TERRAIN Dirt MX1

The MX1 division was decided with two rounds remaining as a result of the skill and speed of Antonio Cairoli and although the Sicilian did not finish the motos in Italy due to a twisted ankle he did climb the final podium ceremony as champion thanks in part to his devastating use of the Scorpion MidSoft 32 front and rear during the season. To the side of the champion were another 12 Pirelli riders filling the first 13 positions. In second and winner of the overall Grand Prix in Italy was works Suzuki rider Clement Desalle who was still suffering from a heavy crash in Holland last week. The Belgian was runner-up in 2010 ahead of Yamaha’s David Philippaerts, who unluckily twisted his knee in the final moto of the season. 5th place on the track allowed Max Nagl to rise to 4th in the standings and sit in front of Steve Ramon, who finished behind his team-mate Desalle in Fermo steering the Suzuki with Scorpion MidSoft 32 front and rear. Overall Classification 1. Clement Desalle Suzuki 2. Steve Ramon Suzuki 3. Sebastien Pourcel Kawasaki 4. Xavier Boog Kawasaki 5. Max Nagl KTM Final Championship standings 1. Antonio Cairoli KTM Team Red Bull De Carli 625 2. Clement Desalle Suzuki Team Teka 537 3. David Philippaerts Yamaha Team Yamaha Monster 502 4. Max Nagl KTM Team Red Bull De Carli 498 5. Steve Ramon Suzuki Team Teka 491 MX2

As with the premier class the MX2 division aptly demonstrated the potency of the Pirelli Scorpion MX with 11 riders from the top 15 classified benefitting from the rubber. At the Italian round world champion Marvin Musquin, riding the official KTM booted with Scorpion MidSoft 32 front and rear on the hard-pack like the rest of the Pirelli collective, had to retire from the second race with a painful arm after a small crash. He had finished second to Ken Roczen earlier in the day. Second on the podium was Yamaha’s Gautier Paulin, with finishes of 4th and 3rd in the motos, while Belgian Joel Roelants was 5th overall. Thanks to 6th place in Italy American Zach Osborne was able to capture 4th spot in the final championship table. Overall Classification 1. Ken Roczen Suzuki 2. Gautier Paulin Yamaha 3. Arnaud Tonus Suzuki 4. Steve Frossard Kawasaki 5. Joel Roelants KTM Final Championship standings 1. Marvin Musquin KTM Team Red Bull Factory 635 2. Ken Roczen Suzuki Team Teka 574 3. Steven Frossard Kawasaki Team CLS 478 4. Zach Osborne Yamaha Team Yamaha Bike-it 397 5. Joel Roelants KTM Team JM Racing 396

Ogier wins in Japan on Pirelli tyres

Sun, 12 Sep 2010 08:48:15 +0200

In terms of difficulty, world championship rallies don’t get much harder than Rally Japan. With its blend of fast, sweeping gravel roads and narrow and technical sections, the event requires plenty of skill and experience to master. Although the threat of rain that had been forecast in the build-up to the event subsided, the surface on the bulk of the stages quickly deteriorated and became coated in small rocks and sharp stones. And while there was no rain, the gravel roads remained damp under tree cover, which made for an inconsistent stage surface with both slippery sections and areas of good grip. Ruts also formed because of the effect of tyres digging into the soft gravel, which made it difficult for drivers to keep their cars on the optimum line. Sebastien Ogier, who secured his second win at WRC level in Japan on Pirelli’s soft-compound Scorpion tyre, had plenty of skill but no prior experience of the demanding stages on the island of Hokkaido when he took the start in Sapporo on Thursday evening. It made the 26-year-old’s triumph even more impressive. “I’m very happy because this is my first time in Japan and I did not expect to take the victory, so it’s really amazing,” said the factory Citroen driver. “Very quickly we found a good rhythm and confidence in the car, which was perfect all rally. I was very happy with my drives in Portugal, where I also won, and in Finland but this weekend was different because I had to be more strategic. I didn’t know the stages, so on the first two days I had to be careful but today, when they were new for every driver, I had a big push and it worked very well for me. As usual we had no problems with our Pirelli tyres because they are very strong and gave a good performance.” Matteo Braga, Pirelli’s senior WRC tyre engineer, said: “The wear rate of the tyres was very low on Friday and we saw a lot of tyres coming back to service looking almost new, even though the ground temperature was 33 degrees centigrade. That’s obviously a good thing because it means the performance of the soft compound tyre stayed consistent. On Saturday there were lots of sharp stones on the stages, which can easily cut the tread, but there wasn’t any significant damage caused to the tyres because of this and that is very satisfying. “Overall, this has been another very successful rally for Pirelli and I am pleased to say that only 770 tyres were required by our 55 crews because the wear rate was so low with no tyre failures. Some privateer crews used 12 tyres for the entire 303 competitive kilometres, while one driver used just six tyres.” Indeed, works Ford driver Mikko Hirvonen, who had been in the thick of the lead battle until a technical fault dropped him back on the final morning, used just four tyres over Sunday’s eight stages after electing not to use the spare tyre, which the WRC’s technical regulations require him to carry, due to the consistent and durable nature of the rubber. Despite the punishing stage conditions, Pirelli’s Scorpion tyre, which uses a reinforced sidewall to counter the threat of deflations, proved extremely resilient. Even the damaged right-rear tyre that Petter Solberg suffered on stage four after clouting a bank was re-inflated by Pirelli’s engineers when it was returned to the service park in Sapporo owing to the fact that the loss of air was caused by a damaged wheel rather than a puncture, although the incident caused the 2003 world champion very little time loss. Solberg, who captured the first of Pirelli’s four wins on Rally Japan back in 2004, took second in his privately-run Citroen with Jari-Matti Latvala third for Ford after a thrilling final day, which began with the top four crews covered by 15 seconds. As well as supplying its Scorpion tyre to the main WRC field as part of a three-year agreement with motorsport’s world governing body, the FIA, runners in the Super 2000 World Rally Championship and Production Car World Rally Championship also use Pirelli covers as standard, thereby underlining the performance and efficiency of the Italian rubber on a wide range of machinery. Jari Ketomaa, who is contesting the SWRC with support from Pirelli as his prize for winning the Finnish championship in 2009, took top honours in the class for normally-aspirated two-litre cars at the wheel of a Ford Fiesta S2000, and Patrik Flodin claimed victory in the PWRC. While Flodin proved unstoppable in his Subaru Impreza, another notable performance came from Hayden Paddon, who was competing in Japan for the first time. Paddon, from New Zealand, is one of five drivers contesting six rounds of the WRC this season as part of the Pirelli Star Driver training programme. Driving a Mitsubishi Lancer, Paddon took second in the showroom class. Up next on the World Rally Championship schedule is Rallye de France from September 30-October 3. The all-asphalt event, which is based in Strasbourg in the Alsace region of the country, concludes with a stage in Sebastien Loeb’s home town of Haguenau, where victory for the Citroen driver would make him world champion for a seventh time.

Pirelli Tyre: Price Increase in European Markets for Car and Truck Tyres

Fri, 10 Sep 2010 18:25:06 +0200

Milan, 10 September 2010 - Pirelli announces a price increase in all European markets for its entire range of products in the Consumer and Industrial segments. There will be a 4% increase for Consumer tyres (car, SUV and light truck) effective 1 October. For Industrial tyres the price increase, already effective since the beginning of September, will be up to 6%.

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