Pirelli & Co has been selected for inclusion in the Ethibel EXCELLENCE Investment Register since 19/12/2013. Forum ETHIBEL (www.forumethibel.org) only allows shares of companies with a high CSR score at all levels. Pirelli selection by Forum ETHIBEL confirms that the company performs better than average in its sector in terms of Corporate Social Responsibility (CSR).”
Rosneft, Oil Techno and Pirelli have signed a Memorandum of Understanding for joint research and development relating to synthetic rubber, in particular Styrene-Butadiene Rubber (SBR), in Armenia.
Under the terms of the MOU, Rosneft will be the leading investor in the SBR operation in Armenia and Oil Techno will be the local partner. For its part, Pirelli will cooperate jointly with Rosneft in research and development activities to develop SBR and is interested in entering into a long-term supply agreement to purchase the SBR produced. An eco-friendly material, SBR is used in the production of “Green tyres”, contributing to improved fuel efficiency and grip in both wet and dry conditions.
Igor Sechin, President and Chairman of the Management Board of Rosneft, said: “the realization of the project will promote the revitalization of rubber industry in Armenia and will help strengthen Armenia’s economy and industrial capabilities to compete in world market. Moreover this memorandum is an example of strengthening ties between Armenia and Russia following trade agreement ratification”.
The head of Pirelli Russia, Aimone di Savoia said: “This MOU to develop a new source of synthetic rubber is another sign of our commitment to and belief in Russia and the Russian market. It is also the fruit of our growing relationship with Rosneft, one of our key partners in the region.”
• STRONG DEMAND IN EMERGING COUNTRIES OFFSETS WEAKNESS IN EUROPE AND RUSSIA
• GROWTH IN VOLUMES IN THIRD QUARTER SUSTAINED MAINLY BY PREMIUM
• OPERATING IMPROVEMENT IN THIRD QUARTER COMPARED WITH LAST YEAR AND THE PRIOR QUARTER THANKS TO EFFICIENCIES AND DESPITE EXCHANGE RATE EFFECT
• IN THE THIRD QUARTER EBIT MARGIN GROWS TO 13.2% FROM 12.6% A YEAR EARLIER
PIRELLI & C. SPA
• REVENUES 4,649.9 MILLION EURO ON 30 SEPT. 2013 (+1.7% COMPARED WITH 4,574.1 MILLION A YEAR EARLIER), AN INCREASE OF 8.3% WITHOUT EXCHANGE RATE EFFECT
• PREMIUM REVENUES: 1,675.3 MILLION EURO (+3.9% FROM 1,612.3 MILLION A YEAR EARLIER)
• TOTAL VOLUMES +6.0% IN THE NINE MONTHS
• PREMIUM VOLUMES +11.7% IN THE NINE MONTHS
• INDUSTRIAL VOLUMES +11.8% IN THE NINE MONTHS
• EBIT: 581.7 MILLION EURO (-3.2% FROM 600.8 MILLION A YEAR EARLIER)
• EBIT MARGIN AT 12.5% FROM 13.1% A YEAR EARLIER
• NET PROFIT 258.1 MILLION EURO (-14.9% FROM 303.3 MILLION A YEAR EARLIER)
• NET FINANCIAL POSITION NEGATIVE 1,970.9 MILLION EURO (1,732.6 MILLION EURO ON 30 JUNE 2013) FOLLOWING IMPACT OF PRELIOS OPERATION
• REVENUES 4,625.8 MILLION EURO (+1.8% COMPARED WITH 4,542.9 MILLION A YEAR EARLIER), AN INCREASE OF 8.4% WITHOUT EXCHANGE RATE EFFECT
• EBIT 599.8 MILLION EURO (-3.3% FROM 620.3 MILLION A YEAR EARLIER)
• EBIT MARGIN 13.0% FROM 13.7% A YEAR EARLIER
• CONSUMER BUSINESS EBIT MARGIN 12.8% (14.8% A YEAR EARLIER)
• INDUSTRIAL BUSINESS EBIT MARGIN 13.5% (10.5% A YEAR EARLIER)
• TOTAL REVENUES SEEN AT APPROX. 6.2 BILLION (APPROX. 6.3-6.35 BILLION PREVIOUSLY)
• TOTAL VOLUMES INCREASE BETWEEN 6% AND 6.5% (BETWEEN 5.5% AND 6.5% PREVIOUSLY)
• CONSOLIDATED EBIT APPROX. 790 MILLION EURO (DUE TO EXCHANGE RATE EFFECTS AND RUSSIA PERFORMANCE COMPARED WITH APPROX. 810 MILLION PREVIOUSLY)
• INVESTMENT CONFIRMED AT APPROX. 400 MILLION EURO
• CASH GENERATION BEFORE DIVIDENDS CONFIRMED ABOVE 200 MILLION EURO AND NET FINANCIAL POSITION BELOW 1.2 BILLION EURO, BEFORE PRELIOS IMPACT
• BOARD CO-OPTS GAETANO MICCICHẾ
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Following the coming into effect from 1 January 2013 of the new principle IAS 19 revised “Benefits to employees”, the data relative to 2012 were restated. In the present document, the comments of variation with respect to 30 September 2012 always refer to restated data, unless otherwise indicated.
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The Board of Directors of Pirelli & C. SpA today reviewed and approved the interim financial results as of 30 September 2013.
The first nine months of 2013, as had already emerged in the first six months, reflected the weakness in the European economy which for Pirelli meant a falloff in sales in the area, albeit with signs of recovery in the third quarter compared with the previous quarter. The Russian market also showed signs of slowing due to changes in the economic climate and a fall in vehicle registrations following the end of government incentives, with a consequent downturn in consumer demand, both for the Original Equipment and Replacement markets.
The healthy trend in emerging markets meanwhile has more than offset the weakness in mature markets, with an 8% increase in revenues compared with a fall in sales in Europe and North America. Performance was particularly positive in South America (+9%) and in Apac (+16%), while the Middle East/Africa area reported results in line with the previous-year period.
Volumes grew in both business segments: +3.9% in Consumer (+6% in Q3) thanks to increased sales in South America and Premium’s strong performance in China and Nafta as well as Europe, while Industrial growth was 11.8% (+4.0% in Q3) mainly focused in South America.
Performance for the Premium segment was positive, with 3 times the growth in volumes compared with those of the Consumer segment, and a favourable trend in demand in emerging countries, in particular in the third quarter.
Sales and operating profit in the first nine months of 2013 both felt the impact of exchange rates, which were particularly unfavourable in the third quarter of 2013 largely due to currency devaluations in Latin America, Turkey, Egypt and Japan. Notwithstanding forex effects, EBIT in Q3 came to 201.0 million euro, up 2.8% from the corresponding period of 2012. This figure includes a negative exchange rate impact of 18.8 million euro.
Net cash flow from operations was also positive in the third quarter (as in Q2), for 45.3 million euro compared with a negative 62.1 million euro in the same period of 2012.