1.1MB - Pirelli

Pirelli was at the 1998 World Cup Final:
320 kilometres of energy transmission cables
were installed at the new Stade de France
in Paris.
Bathymetric profile of the submarine energy
link between Italy and Greece, to be laid at the
record depth of 1,000 metres under the sea.
The negative effects of the Brazilian crisis are expected to influence results in 1999, and
will presumably lead to an increase in imports.
With the current market conditions, it is essential to improve global efficiency in order to
maintain a high level of competitiveness.
In Australia, where Pirelli Cables Australia Ltd. operates, 1998 was characterized by
radical changes within the cables industry, especially among manufacturers, and by
market conditions which were not particularly favorable. However, the Australian affiliate
achieved levels of profitability which were comparable to those of the prior year.
Pirelli won the contract for the exclusive supply of telecommunications cables to Telstra
until June 2001. Moreover, the continuous attention to reducing production costs will
make it possible to secure an ever more dominant market position.
As far as power cables are concerned, the introduction of new products allowed entry into
new markets, compensating for the fall in exports.
The acquisition of the Power Cables and Construction Division of Metal Manufacturers Ltd.,
announced recently, will allow the affiliate to assume a leadership position on the
Australian cables market.
0
100
200
300
400
500
600
700
800
900
1000
1100
Italy
Greece
0 25 50 75 100 125 150 Km.
Performance of the main companies in the Sector
The most significant figures as they appear in the financial statements prepared by the
boards of directors and approved or being approved by the respective shareholders’
meetings are given below.
The amounts are expressed in local currency and are compared to those of the preceding
year:
Câbles Pirelli S.A. - France (in thousands of FF) 1998) 1997)
• Sales revenues 3,220,336) 3,360,477)
• Net income 74,181) 95,250)
• Net financial position (77,822) 52,345)
• Shareholders’ equity 1,261,781) 1,137,616)
Pirelli Cables y Systemas S.A. - Spain - consolidated (in millions of Pesetas) 1998) 1997)
• Sales revenues 29,257) 24,753)
• Net income 1,567) 1,183)
• Net financial position (913) (783)
• Shareholders’ equity 8,549) 9,517)
Pirelli General plc - U.K. - consolidated (in thousands of £) 1998) 1997)
• Sales revenues 349,193) 267,517)
• Net income 22,887) 13,134)
• Net financial position 24,570) 43,465)
• Shareholders’ equity 133,622) 143,297)
Pirelli Cables and Systems LLC - U.S.A. (in thousands of US$) 1998) 1997)
• Sales revenues 524,922) 545,115)
• Net income 61,805) 20,280)
• Net financial position 26,638) 16,253)
• Shareholders’ equity 95,050) 76,001)
i
25