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Sustainability Channel is the communication channel towards our stakeholders interested in Sustainable approach to the business.

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2012: Profitability target achieved

Milan, Pirelli & C. SPA SpA Board approves 2012 results

PIRELLI & C. SPA BOARD APPROVES 2012 RESULTS

RECORD PROFITABILITY THANKS TO FOCUS ON PREMIUM AND EFFICIENCIES

2012 PROFITABILITY AND NET FINANCIAL POSITION TARGETS ACHIEVED

TOTAL INVESTMENT 471 MILLION EURO

RETURN ON INVESTMENTS (ROI) 19.2%

STRONG NET PROFIT GROWTH

PIRELLI & C. GROUP

- EBIT: +34.2% AT 780.8 MILLION EURO (581.9 MILLION EURO ON 31 DECEMBER 2011)

- OVER THREEFOLD EBIT INCREASE IN LAST 3 YEARS, +212% FROM 250 MILLION EURO IN 2009 ON LIKE-FOR-LIKE BASIS

- BIT MARGIN GROWS TO 12.9% FROM 10.3% ON 31 DECEMBER 2011 (COMPARED WITH TARGET OF “ABOUT 13%”)

- NET PROFIT: +27.4% TO 398.2 MILLION EURO (312.6 MILLION EURO IN 2011 BEFORE NON-RECURRING IMPACTS) ). TOTAL NET PROFIT IN 2011 WAS 440.7 MILLION EURO AFTER A POSITIVE IMPACT OF 128 MILLION EURO LINKED TO DEFERED TAXATION
- REVENUES: +7.4% TO 6,071.5 MILLION EURO ( 5,654.8 MILLION EURO ON 31 DECEMBER 2011)

- PREMIUM SEGMENT GROWTH CONTINUES: REVENUES +20.9% TO 2,075.4 MILLION EURO AND VOLUMES +12.6%

- NET FINANCIAL POSITION NEGATIVE 1,205.2 MILLION EURO , A MARKED IMPROVEMENT COMPARED WITH 1,868.8 MILLION EURO ON 30 SEPTEMBER 2012 (COMPARED WITH TARGET OF “ABOVE OR EQUAL TO 1.2 BILLION EURO”)

PIRELLI TYRE


- EBIT: +25.7% TO 809.1 MILLION EURO (643.9 MILLION EURO ON 31 DECEMBER 2011)

- EBIT MARGIN GROWS TO 13.4% FROM 11.5% ON 31 DECEMBER 2011

- CONSUMER BUSINESS EBIT MARGIN AT 14.3% (12.5% ON 31 DECEMBER 2011)

- INDUSTRIAL BUSINESS EBIT MARGIN AT 11.1% (9.1% ON 31 DECEMBER 2011)

- REVENUES: +7.7% TO 6,031.3 MILLION EURO ( 5,601.6 MILLION EURO ON 31 DECEMBER 2011

- BOARD TO PROPOSE TO SHAREHOLDERS THE DISTRUBITION OF A DIVIDEND OF 0.32 EURO PER ORDINARY SHARE (0.27 A YEAR EARLIER) AND 0.39 EURO PER SAVINGS SHARE (0.34 EURO A YEAR EARLIER)

- BUYBACK PROPOSAL TO SHAREHOLDERS APPROVED

- NOTHWITHSTANDING STRONG RESULTS’ GROWTH, MANAGEMENT WILL NOT RECEIVE THE VARIABLE BONUS FOR THE YEAR 2012 BECAUSE THE THRESHOLDS OF ACCESS IN THE INCENTIVE PLAN WERE NOT REACHED

***

2013 TARGETS

CASH GENERATION BEFORE DIVIDENDS POSITIVE AND ABOVE 200 MILLION EURO, EQUAL TO ABOUT 3% OF SALES

NET FINANCIAL POSITION BELOW 1.2 BILLION EURO

INVESTMENTS OF ABOUT 400 MILLION EURO, OVER 70% OF WHICH EARMARKED FOR THE PREMIUM SEGMENT, MIX AND QUALITY ENHANCEMENT. AT THE END OF 2013 PREMIUM CAPACITY WILL BE 33 MILLION PIECES (48% OF THE TOTAL), OF WHICH 63% LOCATED IN LOW COST COUNTRIES AND 60% IN NEW FACTORIES

CONSOLIDATED EBIT BETWEEN 810 AND 850 MILLION EURO WITH A MARGIN IN LINE WITH OR SLIGHTLY HIGHER THAN 2012 AFTER HAVING FINANCED:

- RESTRUCTURING COSTS OF AROUND 30 MILLION EURO

- GREATER MARKETING AND COMMERCIAL COMMITMENTS AIMED AT IMPROVING THE COMPETITIVE POSITIONING IN THE PREMIUM SEGMENT

- INDUSTRIAL COSTS FOR THE CONVERSION OF CAPACITY FROM STANDARD TO PREMIUM AND DEVELOPMENT IN RUSSIA AND MEXICO

- GROWING DEPRECIATION RELATED TO THE INTENSE INVESTMENT ACTIVITY OF THE LAST TWO YEARS AND THE WIDENING OF THE PERIMETER FOR NEW ACQUISITIONS

CONSOLIDATED EBIT WILL INCLUDE CONTRIBUTIONS FROM:

- THE CONSUMER BUSINESS WITH A MARGIN OVER 14% ON SALES FORESEEN AT AROUND 4.6 BILLION EURO

- THE INDUSTRIAL BUSINESS WITH A MARGIN OF AROUND 12% ON SALES OF AROUND 1.7 BILLION EURO

TOTAL REVENUES FORESEEN AT BETWEEN 6.3 AND 6.4 BILLION EURO DERIVED FROM:

- VOLUMES WHICH ARE EXPECTED TO GROW BETWEEN 3% AND 4%. PREMIUM WILL DRIVE DEVELOPMENT WITH A GROWTH RATE BETWEEN 13% AND 14%

- PRICE/MIX BETWEEN +4% AND +5%

- EXCHANGE RATES AT AROUND -4%


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Pirelli ESG Investor Briefing

A PRI – UN Global Compact initiative

Pirelli ESG Investor Briefing

13 March 2013 – 9:00 PDT – 12:00 EDT – 16:00 GMT – 17:00 CET

On 13 March 2013, Pirelli will host its ESG Investor Briefing, as part of a joint PRI-UN Global Compact initiative designed to improve company-investor communications on ESG information, following the model of traditional financial quarterly calls.

During the 1-hour webcast conference call Mr. Marco Tronchetti Provera, Chairman and CEO, and Mr. Maurizio Sala, Head of Planning & Control Department and Filippo Bettini, Head of Sustainability & Risk Governance will present the company’s ESG value drivers using a framework developed in collaboration with Global Compact LEAD companies and PRI investors, followed by a 30 minutes Q&A session for participating investors.

The Pirelli ESG Investor Briefing is a part of a series of 10-15 pilot presentations by Global Compact companies in 2012-2013 designed to test and refine the ESG Investor Briefing concept and develop a framework complementary to sustainability reporting for corporate communication with the investor community on strategic ESG risks and opportunities.

If you are interested in participating in Pirelli’s ESG Investor Briefing, and you are a a PRI signatory, you can directly register here. If you are not a PRI signatory, please contact Danielle Chesebrough, Manager of Investor Engagements with the UN Global Compact at Danielle.Chesebrough@unpri.org, who will register you and provide you with a link for the webinar and dial-in details.

Open the PRI-UN Global Compact – Pirelli invitation (PDF Version, 256 KB)


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Pirelli awarded by Jaguar Land Rover

Burton upon Trent, March 5, 2013 – On 24th January, a delegation of managers from Jaguar Land Rover (JLR), including Terry Sampson, the STA Director for JLR, Russ Perry, STA Manager and Mark Beasley STA Engineer visited Pirelli’s Carlisle site to officially present the JLRQ Award to Pirelli UK.

JLRQ is the Jaguar Land Rover supplier performance monitoring system and since 2011 Pirelli UK have being satisfying the requirements of this exacting standard.  Pirelli is the only tyre manufacturer in the UK to be in receipt of this award.

The award is broken down into three main areas, all of which have to be consistently achieved for the award to be given and then retained.  Firstly, suppliers have to demonstrate robust operating systems and processes in the way they run their business.  Secondly, the quality and delivery requirements of JLR have to be met (measured on a daily basis). Finally and probably most difficult of all, the quality and logistics management teams of JLR have to endorse the performance and support the awarding of JLRQ.  To achieve this quality parts in the right quantity at the right time have to be consistently delivered.

As part of the visit the JLR team were given a tour of the plant before presenting the award to an audience of 70 Pirelli employees from industrial, engineering, quality and research and development. The Director of Quality, Tony Di Gravio, noted that: “This award recognises the effort and dedication of the workforce which has contributed to the extensive range of SUV and UHP tyres that are currently on supply from Carlisle to JLR in 18, 19 and 20 inch sizes.” JLR vehicles fitted with tyres made in Carlisle include the Range Rover Evoque, the Range Rover, the Range Rover Sport and the Jaguar XF.

In recognising the significance of this award in a speech to Pirelli employees, Terry Sampson said: “You have met the quality and delivery requirements of Jaguar Land Rover. We measure these requirements on a daily basis and generate metrics of your performance.  For the associates who come into this factory every day and make our parts this is what you contribute towards every minute of every hour of every day. All of you should be congratulated for the significant improvement this factory has achieved over the last two years in meeting these targets.” He also added that: “This award signifies that this factory and all the associates who help make JLR parts have consistently met our quality and delivery requirements” and concluded by commending our performance and thanking everyone concerned for their hard work and dedication.



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