The holding company does not plan to pay a dividend this year, and it is preparing a capital hike of up to 400 million euros for its real estate business, Pirelli & C Real Estate SpA .
Pirelli has already been cutting jobs. Pirelli RE will have nearly 40 percent fewer staff and Pirelli Tyre 15 percent less.
At a presentation of the plan to analysts and investors on Wednesday, Chairman Marco Tronchetti Provera said Pirelli had decided against a dividend this year but could hand one out next year.
Pirelli's dividend yield is about 6.6 percent, in line with the European tyre sector.
It will subscribe to the capital increase for a quota equal to its 55.3 percent stake in the business. It will do this by converting part the debt the business owes it into equity.
