Result as of March 31st, 2015 

The results of the first quarter of 2015 show growth in revenues and profitability underpinned by the performance in the Premium segment, in particular in emerging markets where Pirelli increased its market share.

Results highlights

  • Premium volumes at +10%, in line with 2015 guidance, in particular in Apac, Latam, Meai and Russia. Premium climbed to about 59% of Consumer revenues, an improvement of 2 percentage points compared with the first quarter of 2014;

  • Positive performance of the price/mix component (+3.7%), in line with 2015 guidance;

  • Revenue growth of 6.5% to 1,568.4 million euro (+2.4% at the organic level), in line with full-year targets; positive performance of the Consumer business (revenues +9.6%, volumes +0.4%), while the Industrial business (revenues -3.8%, volumes -6.7%) continues to discount the general decline of the market, in particular in South America;
  • Ebit growth of +4.5% yoy at 210.1 million euro. Ebit margin at 13.4%, substantially stable compared with 13.6% on 31 March 2014. The improvement of the operating result (+9.1 million euro) reflects:
  • ◦ the positive contribution of the price/mix component (+31.0 million euro) and of efficiencies (21.1 million euro), which more than offset the impact of the slight decline of volumes (-7.6 million euro), higher amortizations and other costs;
    ◦ the lower cost of raw materials (+16.4 million euro) and the positive forex impact (+9.4 million euro), which mitigated the negative effect of the inflation of production factors (34.6 million euro);
    ◦ lower non-recurring charges of 3.3 million euro.
  • Net profit of continuing operations was 101.4 million euro, an increase of 12.2% yoy. As well as the improvement in the operating result, profit growth saw the contributions of results from shareholdings and a lower tax burden (tax rate at 34.8% compared with 37.2% in first quarter 2014);
  • 2015 targets confirmed
◦Revenues of approx. 6.4 billion euro;
◦Ebit equal to ~930 million euro after restructuring expenses of about 40 million euro;
◦Investments below 400 million euro;
◦Cash generation before dividends over 300 million euro;
◦Net Financial Position of ~850 million euro.

2015 Targets

Last revised: 14 Mag 2015