High exchange rate volatility, seen in particular in the third quarter, and the changed scenario in the tyre market in Russia, led Pirelli to partially review the guidance given in August 2013.
- Consolidated sales expected to be around 6.2 billion euro (about 6.3-6.35 billion euro previously) as a consequence of the following variables:
o total volumes increasing by between 6% and 6.5% (5.5%-6.5% the previous target), driven by the Premium segment where volumes continue to show healthy growth above 13% in 2013.
o price/mix is seen growing by between 3% and 3.5% (3.5%-4% the previous target)
o exchange rates are expected to diminish by about 7% (around 6% previously) with a negative impact on Ebit of 70 million euro (previous indication 60 million).
- Consolidated Ebit at around 790 million euro (due to exchange rate effects and Russia performance compared with around 810 million euro the previous target). The variation is explained mainly by the aforementioned exchange rates dynamic, by results in Russia - affected by the steep slowdown of the tyre market in a weakening macroeconomic context - and by trends in the non-tyre businesses
- Lower raw materials costs (impact on Ebit from 125 to 135 million euro), offset in part by the decline in Ebit.
- Investments confirmed at about 400 million euro.
- Cash generation, before dividends, confirmed at above 200 million euro and net financial position confirmed negative at below 1.4 billion euro, after the reclassification of Prelios’s credit (1.2 billion euro before the Prelios impact).