Profit and Loss Account by Sector

Profit and Loss Account by Sector

 

The following table presents Profit and Loss Accounts and Net Financial Position of Pirelli business segments, for a better understanding of the performance of the Group:
 

							2007
(in millions of euros)	Tyres	Broadband	Other businesses	Real Estate	Other	TOTAL
Net sales	4,161.7	117.1	71.4	2,148.7*	5.6	6,504.5
Net sales (excluding DGAG)	-	-	-	853.1	-	5,208.9
Gross operating profit (loss)	548.6	(11.1)	(7.6)	61.8	(10.8)	580.9
Operating profit (loss)	358.1	(13.5)	(8.5)	50.4	(19.6)	366.9
Earnings (losses) from investments	(1.5)	-	0.3	186.1	8.0	195.3
Operating profit (loss) incl. earnings (losses) from investments	359.6	(13.5)	(8.8)	236.5	(11.6)	562.2
Financial income (expenses)	(55.2)	(3.9)	(0.5)	(41.5)	(37.1)	(138.2)
Income taxes	(93.9)	(0.0)	(0.5)	(34.1)	(5.0)	(133.5)
Income (loss) from continuing operations	210.5	17.4	9.8	160.9	(53.7)	290.5
Net financial (liquidity)/debt position	559.6	289.7	21.5	5.6	(1,178.5)	(302.1)
*Including Euros 1,295.6 million from the DGAG deconsolidation
							2006
(in millions of euros)	Tyres	Broadband	Environment	Real Estate	Other	TOTAL
Net sales	3,949.5	129.4	69.0	702.0	(8.7)	4,841.2
Gross operating profit (loss)	533.7	1.1	0.5	113.1	(34.3)	614.1
Operating profit (loss)	342.3	(0.3)	(0.2)	103.7	(44.1)	401.4
Earnings (losses) from investments	(2.4)	(1.0)	0.0	110.7	(1,256.6)	(1,149.3)
Operating profit (loss) incl. earnings (losses) from investments	339.9	(1.3)	(0.2)	214.4	(1,300.7)	(747.9)
Financial income (expenses)	(54.1)	(1.6)	(0.1)	(3.1)	(84.2)	(143.1)
Income taxes	(86.5)	(0.4)	(0.5)	(49.3)	8.9	(127.8)
Income (loss) from continuing operations	199.3	(3.3)	(0.8)	162.0	(1,376.0)	(1,018.8)
Net financial (liquidity)/debt position	601.5	13.1	0.0	96.4	1,268.6	1,979.6
							2005
(in millions of euros)	Tyres	Broadband	Environment	Real Estate	Other	TOTAL
Net sales	3,632.9	112.2	61.5	700.2	38.9	4,545.7
Gross operating profit (loss)	518.1	(6.3)	(2.0)	92.8	(35.0)	567.6
Operating profit (loss)	328.8	(7.0)	(3.6)	83.9	(47.2)	354.9
Earnings (losses) from investments	(1.3)	-	-	102.3	166.1 (1)	267.1
Operating profit (loss) incl. earnings (losses) from investments	327.5	(7.0)	(3.6)	186.2	118.9	622.0
Financial income (expenses)	(32.1)	(0.7)	0.0	1.2	(112.8)	(144.4)
Income taxes	(97.0)	(0.4)	0.2	(40.5)	9.2	(128.5)
Income (loss) from continuing operations	198.4	(8.1)	(3.4)	146.9	15.3	349.1
Net financial (liquidity)/debt position	237.4	7.2	0.8	30.5	901.5	1,177.4

 

(1) This includes the valuation of Olimpia S.p.A. by the equity method showing earnings of Euros 170 million (Euros 153 million in 2005), the writedown of Olimpia S.p.A. fornEuros 2,110 million, the gain on the private placement of Pirelli Tyres for Euros 416 million and the gain on the sale of the investment in Capitalia S.p.A. for Euros 215 million.