Pirelli

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Pirelli & C. S.p.A.
Type Società per azioni
Traded as BIT: PC
Industry auto and parts
Founded 1872
Founder(s) Giovanni Battista Pirelli
Headquarters Milan, Italy
Area served Worldwide
Key people Marco Tronchetti Provera (Chairman and CEO), Alberto Pirelli (deputy chairman), Vittorio Malacalza (deputy chairman)[1]
Products Car, Moto, Industrial Tyres
Revenue € 6.072 billion (2012)[2]
Operating income € 781 million (2012)[2]
Profit € 398 million (2012)[2]
Total assets € 7.592 billion (2012)[2]
Total equity € 2.389 billion (2012)[2]
Employees 37,338 (2012)[2]
Subsidiaries Pirelli Tyre S.p.A
Website pirelli.com/corporate

Pirelli & C. SpA is a multinational company based in Milan, Italy, listed on Milan Stock Exchange since 1922.[3] The company, the world’s fifth-largest tyre manufacturer behind Bridgestone, Michelin, Goodyear, and Continental, is present in over 160 countries, has 22 manufacturing sites around the world and a network of around 10,000 distributors and retailers.[4][5]

Pirelli has been sponsoring sport competitions since 1907 and is currently the exclusive tyre supplier for the Formula One Championship for 2011-2013[6] and for the FIM World Superbike Championship.[7]

While tyre manufacturing represents 99% of Pirelli’s revenue,[8][9] the company has also launched fashion project PZero, a high-tech sportswear brand,[10] and operates in renewable energy and sustainable mobility through Pirelli Prodotti e Servizi per l’Ambiente.

Pirelli has published its Pirelli Calendar since 1964, which has featured the contribution of famous photographers over the years. The 2013 edition was commissioned to war photographer Steve McCurry.[11]

Pirelli’s headquarters are located in Milan’s Bicocca district, an area that is home to one of the most important Italian universities, Università degli studi di Milano-Bicocca, and cultural locations such as the Teatro degli Arcimboldi and Hangar Bicocca, an exhibition centre for contemporary art that Pirelli founded.

Contents

History [edit]

Pirelli headquarters

Founded in Milan in 1872 by Giovanni Battista Pirelli, Pirelli initially specialised in rubber and derivative processes, and the company formerly made scuba diving rebreathers.[12] Effectively, Pirelli's activities are still primarily focused on the production of tyres and cables (for energy and telecommunications). In 2005, Pirelli sold its cable division to Goldman Sachs, which changed the new group's name to Prysmian. It is said[by whom?] that Giovanni and his brother, Francesco Pirelli will award the companies net worth to their grandson, Marcello; the favorite of the Pirelli billion-dollar family.

In the 1950s, Alberto Pirelli commissioned the building of a famous Milanese skyscraper in the same area that housed the very first Pirelli factory during the 19th century: see Pirelli Tower.[13]

In 1974, Pirelli invented the "wide radial tyre", upon a request from the Lancia rally racing team for a tyre strong enough to withstand the power of the new Lancia Stratos. At that time, racing tyres were either slick tyres made with the cross ply technique (very wide tyres with a reduced sidewall height), or radial tyres, which were too narrow to withstand the Stratos' power and did not provide enough grip. Both were unusable for the Lancia Stratos, as the radials were destroyed within 10 km, and the slicks too stiff. Lancia asked Pirelli for a solution, and in 1974 Pirelli created a wide tyre with a reduced sidewall height like a slick, but with a radial structure.

Subsequently, Porsche started using the same tyres with the award-winning Porsche 911 Turbo.[14]

Today,[when?] the wide tyres are still the standard in sport & racing cars in Europe.

Corporate affairs [edit]

Major shareholders [edit]

The list of Pirelli main shareholders[15]

  • Camfin, 20.3%
  • Mediobanca, 4.6%
  • Edizione Srl 4.6%
  • Fondiaria SAI, 4.4%
  • Allianz, 4.4%
  • Assicurazioni Generali, 4.4%

Board of directors [edit]

The list of Pirelli Board of Directors:[16][17]

  • Marco Tronchetti Provera: Chairman and CEO of Pirelli & C. S.p.a. from 7 May 2003
  • Alberto Pirelli: Deputy Chairman of Pirelli & C. S.p.a. since 7 May 2003
  • Vittorio Malacalza: Deputy Chairman of Pirelli & C. S.p.a. from 14 October 2010
Directors
  • Carlo Acutis
  • Anna Maria Artoni
  • Gilberto Benetton
  • Alberto Bombassei
  • Franco Bruni
  • Luigi Campiglio
  • Paolo Ferro Luzzi
  • Pietro Guindani
  • Giulia Maria Ligresti
  • Elisabetta Magistretti
  • Massimo Moratti
  • Renato Pagliaro
  • Giovanni Perissinotto
  • Luigi Roth
  • Carlo Secchi
  • Manuela Soffientini

Financial information [edit]

Financial Data [2] 2012

(million €)

 2011

(million €)

 2010

(million €)
Net Sales 6,072 5,655 4,848
Gross Operating Profit 1,052 807 629
EBIT 781 582 408
Net Income 398 441 4
Net Invested Capital 4,427 3,727 3,281
Equity 2,389 2,192 2,028
Employees 37,338 34,259 29,573

Marketing [edit]

The Pirelli Calendar is published annually, and regularly features famous actresses and fashion models. The calendar also features the work of many of the most respected fashion photographers in the world, including Herb Ritz, Richard Avedon, Mert & Marcus, Peter Lindbergh, Annie Leibovitz, and Patrick Demarchelier.

The Pirelli Internetional Award is given annually for the best international multimedia involving the communication of science and technology conducted entirely on the Internet.

"Power is nothing without control" is the well known slogan of Pirelli Tyre Company, and is featured in numerous television and print advertisements.

Pirelli is the long-serving main sponsor of Italian football club F.C. Internazionale Milano, having sponsored the Italian team since the 1995–96 season.

Sponsorship [edit]

Football [edit]

Pirelli has a history of sponsoring football teams. Pirelli is well known for its long term primary sponsorship of the Italian football team Internazionale. Pirelli previously appeared as a sponsor on the shirts of the Maltese football club Valletta for a short time. Pirelli's sponsorship of football teams not only happens in Europe, South America is a key market and as a result successful clubs South America have been sponsored by the tyre company. The Brazilan team Palmeiras, Uruguayan team Peñarol and Argentinian side Vélez Sársfield both had Pirelli as a shirt sponsor. When English Football League Two side Burton Albion Football Club built their new stadium in 2005, Pirelli became the title sponsor the new ground. This was because the new stadium, named Pirelli Stadium lies next to the Pirelli factory in Burton-upon-Trent, Staffordshire, England. In 2009 Pirelli became the title sponsor of the Chinese Super League (CSL), China's top tier football league.

Rally [edit]

Pirelli also supports rally with their Pirelli Star Driver program as an initiative to support young rally drivers, organised by Pirelli and the Fédération Internationale de l'Automobile (FIA).

Motorsport [edit]

Pirelli is the only allowed tyre brand in the FIM World Superbike Championship since 2007 (along with its support classes, such as the Supersport World Championship). Pirelli has also been awarded the contract for the control tyre supply in the British Superbike Championship from 2008 until at least 2010.[18] Pirelli were also the official tyre supplier of the World Rally Championship replacing BF Goodrich for the 2008 season, with all cars using Pirelli tyres and wearing Pirelli decals until the company withdrew to focus on its Formula 1 commitments at the end of the 2010 season.

Pirelli is the sole tyre supplier in Formula One, following Bridgestone's decision to withdraw from the role at the end of 2010.[19][20][21] Pirelli previously competed in Formula One from 1950–1958, 1981–1986 and 1989–1991.

Year Official test drivers
2010 Germany Nick Heidfeld & Spain Pedro de la Rosa
2011 Spain Pedro de la Rosa & Brazil Lucas di Grassi
2012 Brazil Lucas di Grassi & Spain Jaime Alguersuari
2013[22] Brazil Lucas di Grassi & Spain Jaime Alguersuari

Overseas investment [edit]

In April 2012, Pirelli & C. SpA signed joint venture agreement with Indonesian counterpart PT Astra Autoparts a subsidiary of PT Astra International for the construction of a motorcycle tire plant with a total investment of $120 million. 60 percent shares will be held by Pirelli. Pirelli hoped to strengthen its presence in the largest motorcycle market in the world, the Southeast Asia region which has 250 million motorcycles.[23]

In 2012, the company become a major sponsor of the Russian Cup.

See also [edit]

Portal icon Italy portal
Portal icon Companies portal

References [edit]

  1. ^ "Board of Directors". Pirelli. Retrieved 3 August 2012. 
  2. ^ a b c d e f g "Annual Report 2012". Pirelli & C. 
  3. ^ "Pirelli Company Profile". Borsa Italiana. Retrieved 21 February 2013. 
  4. ^ "Pirelli puts corporate governance plan into action". World Finance. Retrieved 21 February 2013. 
  5. ^ "Pirelli Company Profile". Pirelli. Retrieved 21 February 2013. 
  6. ^ "Sporting regulations". Formula 1. Retrieved 21 February 2013. 
  7. ^ "Pirelli supply wsbk tyres". Yahoo sport. Retrieved 21 February 2013. 
  8. ^ "Pirelli in 2011: sales up revenue way up". Modern tire dealer. Retrieved 21 February 2013. 
  9. ^ "Pirelli the board of directors approves consolidated financial statements". Pirelli. Retrieved 21 February 2013. 
  10. ^ "The Pirelli PZero project". Motorcycle. Retrieved 21 February 2013. 
  11. ^ "Pirelli calendar turns over a new leaf with war photographer Steve McCurry". The Guardian. Retrieved 21 February 2013. 
  12. ^ Coates, JK; Kincaid, TC; Lanphier, EH (1952). "Evaluation of the Pirelli Underwater Oxygen Breathing Equipment for Use in the Naval Service.". Navy Experimental Diving Unit Technical Report. NEDU-RR-2-52. Retrieved 2009-03-16. 
  13. ^ Skyscrapers, Antonino Terranova, White Star Publishers, 2003 (ISBN-8880952307)
  14. ^ [1][dead link]
  15. ^ "Pirelli Company Structure". Pirelli. Retrieved 31 August 2012. 
  16. ^ "Pirelli Board of Directors". Pirelli. Retrieved 31 August 2012. 
  17. ^ "Pirelli Corporate Governance". Borsa Italiana. Retrieved 31 August 2012. 
  18. ^ British Superbikes 2007[dead link]
  19. ^ "Bridgestone to Cease Tire Supply to the FIA Formula One World Championship". Bridgestone. 2009-11-02. Retrieved 2009-11-02. 
  20. ^ "World Motor Sport Council: 23 June 2010". fia.com. Fédération Internationale de l'Automobile. 2010-06-23. Retrieved 2010-06-23. 
  21. ^ Collantine, Keith (2010-06-23). "Pirelli return to F1 after 20-year absence". F1 Fanatic (Keith Collantine). Retrieved 2010-06-23. 
  22. ^ "Lucas di Grassi and Jaime Alguersuari keep Pirelli F1 test roles". 2013-01-23. Retrieved 2013-01-23. 
  23. ^ "Indonesia welcomes Pirelli, Italian touch for local shoes". 25 April 2012. 

External links [edit]

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