Results as of March 31, 2014
Pirelli’s results show solid organic revenue growth and a significant improvement in profitability, on the back of the ever growing positive contribution of the Premium segment and recovery of demand in Europe.
- Revenues amounted to 1,473.2 million euro, with an organic growth of 8% compared with Q1 2013. Including the 10.7% negative impact linked to exchange rates, revenues declined by 2.7%.
- Premium revenues totaled 639.9 million euro, +16.4% yoy (+12.9% including exchange rate impact), representing 56.7% of Consumer sales (50.8% in the first quarter of 2013). This business sector saw sustained growth both in emerging countries (+14.7%) and mature markets (+12.4%) also thanks to the recovery in the Europe.
- Operating result (Ebit) was 201.0 million euro (13.6% on sales), an increase of 12.6% compared the first quarter of 2013. The positive contribution of volumes (+24 million euro) and price/mix (+39.3 million euro thanks to Premium and price increases in emerging countries), efficiencies of 27.6 million euro and lower raw material costs more than offset the negative impact of production costs (-29.5 million euro), exchange rate volatility in consolidation (-19.2 million euro impact on Ebit) and higher amortization and other costs (-27.2 million euro). Ebit included restructuring costs for 5.7 million euro.
- Net profit was 90.4 million euro, +26.1% compared with 71.7 million euro in the corresponding 2013 period, due to better operating performance and lower net financial charges of 43.3 million euro (58.0 million euro in the corresponding 2013 period).
- Consolidated net financial position was negative 1,965.6 million euro (1,322.4 million euro on 31 December 2013), increasing in line with the usual business seasonality of working capital.
- 2014 targets confirmed: sales of approximately 6.2 billion euro (volume growth >+5%, Premium volumes at >+14%, price/mix between approx. +4% and approx. +5%), organic revenue growth at >+9%/+10%, Ebit at approximately 850 million euro after restructuring costs of 50 million euro, investments below 400 million euro, cash generation before dividends above 250 million euro and Net financial position negative at approximately 1.2 billion euro.