Highlights of Other Activities

The other businesses are comprised by Pirelli & C. Eco Technology S.p.A., Pirelli & C. Ambiente S.p.A., PZero S.r.l., and the Group holding and service companies, including the parent, Pirelli & C. S.p.A.

(in millions of euro)
 
PIRELLI ECO TECHNOlOGY PIRELLI AMBIENTE PzERO OTHER TOTAL OTHER ACTIVITIES
2011 2010 2011 2010 2011 2010 2011 2010 2011 2010
Net sales 43.3 61.4 1.6 4.4 9.7 7.7 (1.4) 2.9 53.2 76.4
Operating income (loss) before restructuring expenses (12.2) (11.4) (8.6) (6.3) (11.8) (0.3) (19.4) (25.8) (52.0) (43.8)
Restructuring expenses (10.0) (1.5) - - - - - - (10.0) (1.5)
Operating income (loss) (22.2) (12.9) (8.6) (6.3) (11.8) (0.3) (19.4) (25.8) (62.0) (45.3)
Net income (loss) (24.6) (14.9) (6.8) (6.0) (12.2) (0.4) (15.2) (3.3) (58.8) (24.6)
Net financial (liquidity)/ debt position 62.7 38.0 49.3 30.1 7.2 3.8 (344.4) (726.2) (225.5) (654.3)

 

At December 31, 2011 net sales totalled euro 53.2 million, compared with euro 76.4 million a year earlier, with the decrease being attributable to Pirelli & C. Eco Technology.

The operating loss was euro 62.0 million, compared with a loss of euro 45.3 million in the same period of 2010.

For Pirelli Eco Technology this result includes non-recurring charges connected with restructuring and the complete write-off of goodwill carried on the books for euro 10 million, compared with euro 1.5 million in the previous year.

Pirelli Ambiente practically completed its reorganisation, which resulted in a series of one-off impacts on inventories and assets. This subsidiary is essentially a holding company now with an equity investment in renewable energy activity.

PZero is facing costs to reinforce its business model, which involves development of the retail channel. Its first single brand store was opened in Milan in September.

The residual amount, which includes the parent, compares favourably with 2010 due to the revision of royalties paid by Pirelli Tyre for use of the company brand, which have risen from 0.7% to 1.3% of net sales, partly in consequence of the enhanced brand value.

The net financial (liquidity)/debt position was impacted by the capital increase by the parent in favour of Pirelli Tyre S.p.A. for euro 500 million.