Results as of December 31, 2013
Pirelli 2013 results show growth in revenues and a solid operating performance regardless of exchange rate volatility and the difficult macro-economic context, which affected Europe in particular.
- Consolidated revenues on December 31st, 2013 stood at 6,146.2 million euro, a yearly increase of 1.2%; excluding the negative impact linked to exchange rates, total revenues grew 8.4%.
- Premium revenues amounted to 2,210.0 million euro, approximately 49% of total Consumer revenues, an increase of 6.5% compared with full year 2012 following strong growth in the last two quarters of the year; emerging markets were particularly dynamic, showing a 22% growth rate.
- Operating result (Ebit) at 791.0 million euro (12.9% on revenues), stable as compared with 2012 and in line with the target. The positive contribution of volumes (+98 million euro) and price/mix (+47 million euro), the lower cost of raw material (+136 million euro) and gross efficiencies (+74 million euro), covered higher production costs, including amortizations. The operating result was further impacted by restructuring charges of 25.5 million euro, linked to the ongoing rationalization of structures.
- Net profit was 306.5 million euro (391.5 million in 2012). The total was impacted by the income from equity participations (-78.3 million euro) and the indebtedness trend (higher average net debt, different debt geographic mix, devaluation of Venezuelan, Egyptian currencies), whereas in 2012 there was a benefit from financial gains deriving from the financing to Prelios S.p.A. and one-time income on exchange rates linked to the launch of the activities in Russia.
- The consolidated net financial position was negative 1.322,4 million euro, in line with the target of below 1.4 billion euro; strong cash flow generation in the fourth quarter of 2013, due to the seasonality of the business and efficient management of working capital. The total net cash flow, before the effects of the financial reorganization of Prelios and the parent group’s dividend payment, was positive 232.4 million euro (-335.8 million in 2012), in line with the target of over 200 million euro.
- 2014 Targets confirmed in terms of Ebit (850 million euro after restructuring costs of 50 million euro), investments (<400 million euro), cash generation before dividends (>250 million euro) and net financial position (negative at around 1.2 billion euro). Consolidated sales expected at around 6.2 billion euro (previous target around 6.6 billion euro) reflecting the more cautious exchange rate outlook (-9%/-10% vs. -2%/-3%). Volumes confirmed at above +5%, Premium volumes at above +14% (previous target ~12%), price/mix improvement at +4%/+5% (+1pp vs. previous target).