14MB - Pirelli

ued focus on higher-end product segments and price increases
made to partly compensate the increase in per unit costs. The exchange
rate change is negative (-2.8 percent).
The single components of the change in net sales are as follows:
Volumes -6.0%
Prices/mix +7.3%
Change on a like-for-like basis +1.3%
Foreign exchange effect -2.8%
Total change -1.5%
In the last quarter, the change in sales is a negative 10.2 percent
compared to the corresponding period of 2007, with a negative exchange
rate effect of 5.2 percent and an organic reduction of 5 percent
(-19 percent in volumes and +14 percent in the price/mix).
The distribution of net sales by geographical area and product
category is as follows:
GEOGRAPHICAL AREA
2008 2007
Italy 9% 10%
Other European countries 36% 38%
North America 7% 8%
Central and South America 33% 28%
Oceania, Africa, Asia 15% 16%
100% 100%
Product category
2008 2007
Car tyres 60% 61%
Truck tyres 29% 28%
Motorcycle tyres 9% 8%
Steelcord/other tyres 2% 3%
100% 100%
Sales continue to grow in South America in response to a positive
market trend and an increase in the currency value in the
first three quarters while the overall reduction in sales volumes
is mainly due to the contraction of markets in Europe and North
America.
The composition of sales remains the same in the two business
segments: Consumer (68 percent) and Industrial (32 percent).
ANNUAL FINANCIAL REPORT 2008
47