Result as of December 31, 2014 

FY2014 results – in line with targets – show growth in the main economic indicators, the strengthening of Pirelli’s Premium positioning in all geographic areas and better than expected cash flow generation.

More in detail:

  • Premium segment volumes +17.8% (above the 2014 target of >16%), accounting for 55% of total Consumer revenues, an increase from 50.8% in 2013;
  • price/mix component at +4.2% (in line with the 2014 target of about +4%/~+5%)
  • the positive performances in Apac, Europe and Nafta, with revenue and profitability growth which attenuated the effects of the slowdown in the South American market;
  • Ebit margin at 13.9% (12.9% in FY2013)
  • cash generation before dividends and the steelcord disposal above expectations at approximately €312 million (above the 2014 target of >€250 million).

Total revenues amounted to €6,018 million, with organic growth of 5.9% compared with the corresponding period of 2013 (-0.7% including the negative forex impact).

Operating result (Ebit) was €838 million, an increase of 6.8% over the figure FY2013, Ebit margin stood at 13.9% (12.9% in FY2013).

The improvement in profitability was impacted by:

  • growth in the price/mix component which, together with the lower raw material cost, more than offset the negative forex impact with a net balance of €81 million;
  • the positive contribution of volumes (+€58 million);
  • efficiencies of €92 million, which mitigated inflation in production factors

These factors, together with better operating results of minor businesses, compensated the impact of higher amortisations and other costs for a total of 62 million as well as the restructuring costs (€ 5 million)

Net profit of 332.8 million euro, an increase of 8.6% after the impact of the devaluation of the Venezuela exchange rate (72 million euro) and the adjustment of shareholdings (-87 million euro).

Consolidated net financial position negative for approximately €980 million, a marked improvement compared with €1,322.4 million at the end of 2013 and compared with €2,003.9 million on 30th September 2014.

The Board of Directors will propose the Shareholders’ Meeting the distribution of a dividend of 0.367 euro per ordinary share (0.32 euro for the prior year) and 0.431 euro per savings share (0.39 euro for the prior year), for a total dividend payout of 179.6 million euro, equal to 40.5% of the net profit adjusted for the impact of non-recurring events (Venezuela, write-down of shareholdings and capital gain from the sale of Steelcord).

2015 Targets:

Consolidated Ebit at ~930 million euro after restructuring charges of approx. 40 million euro.

Total revenues forecast to grow by +6%/+6.5% to approx. 6.4 billion euro deriving from:

  • volume growth expected at equal to or above+3%.
  • Premium will be the development driver with volume growth equal to or above +10%
  • price/mix growth at equal to or above +4%
  • Forex impact at about -1%

Cash generation before dividends over 300 million euro

Investments below 400 million euro

2015 Targets

Last revised: 02 Apr 2015