18. INVENTORIES

Inventories can be broken down as follows:

(in thousands of euro)
 
12/31/2011 12/31/2010
Tyre 1,019,034 682,048
Others 17,641 10,211
  1,036,675 692,259
(in thousands of euro)
 
12/31/2011 12/31/2010
Raw and auxiliary materials and consumables 305,540 200,793
Sundry materials 1,746 1,787
Work in progress and semi-finished products 96,048 64,628
Finished products 614,441 415,672
Goods for resale 9,997 3,723
Advances to suppliers 8,903 5,656
 
1,036,675 692,259

 

The increase in inventories from December 31, 2010 is the direct consequence of changes in commodities prices on international markets, which caused purchase costs to rise more than 25%. Another part of the increase is due to the slowdown in sales volumes during the last quarter (-3.9%) and a stock streamlining policy aimed at improved satisfaction of demand. This new policy is scheduled to be implemented in Q1 2012, especially in the premium product segment.

Impairment losses on inventories recognised in 2011 totalled euro 5,097 thousand (euro 6,525 thousand at December 31, 2010). The reversal of previous impairments totals euro 7,268 thousand (euro 10,077 thousand at December 31, 2010).

Inventories were not subject to any collateral pledges.