Pirelli RE remained in the red in the first quarter of 2009 but the loss narrowed compared with the last quarter of 2008, the company said on Tuesday. 'Again in the first quarter of 2009, the real estate industry felt the effects of the serious international crisis that began in the previous year,' it said.
Pirelli RE remained in the red in the first quarter of 2009 but the loss narrowed compared with the last quarter of 2008, the company said on Tuesday. 'Again in the first quarter of 2009, the real estate industry felt the effects of the serious international crisis that began in the previous year,' it said.
Earnings before interest and taxes (EBIT) came to EUR -14.7 mln in Q1 compared with a profit of EUR 22.5 mln in the first quarter of 2008. The Milan-based property company, which recently announced a major restructuring of its business including a EUR 400 mln capital increase, confirmed its target for positive EBIT in 2009, but said that could be affected by factors including the economic climate, performance of the real estate market, interest rate dynamics and credit access conditions.
Revenues in the first three months totalled EUR 53.8 mln, down from EUR 74.7 mln in the year-earlier period. The company's net debt rose to EUR 309 mln at end-March from EUR 289.5 mln at end-December.
