Results as of March 31, 2013
Pirelli’s results in Q1 2013 were affected by overall macro-economic performance, with a decline of sales and results in Europe, still in the midst of an economic crisis, partially offset by growth in other geographic areas.
Our distinctive geographical reach allowed us to capture growth opportunities in emerging markets, across different sales channels and businesses
Pirelli & C.
- Revenues at 1,536.3 million euro, +3.6% before the exchange rate impact (negative 4.9 percentage points)..
- Premium Revenues totaled 548.1 million euro, equal to 49.1% of Consumer sales compared with 48.9% in the first quarter of 2012. Emerging markets registered sustained growth (+28% yoy), whereas in the Nafta area, where there was a slowdown in tyre demand, Premium revenues were stable as compared with the first quarter of last year. Premium revenues were down in Europe (-13%), in full recession. This trend discounts the steep decline in demand, price reduction in the face of a positive trend of raw materials and the greater weight of original equipment channel, an investment for the subsequent growth of the segment due to the strong pull through in the replacement channel. In total, Premium revenues declined by 2.8%.
- Operating result (Ebit) was 179.8 million euro, with profitability at 11.7% (Ebit margin in Q1 2012 was 13.7% of sales). The decline was negatively affected by, among other things, an exchange rate impact of about 10 million euro, greater industrial costs (about 10 million euro) mainly due to the acceleration of the process of focusing the Settimo Torinese hub on Premium production and the start-up in Mexico, greater amortization of 10.8 million euro stemming from investment activity in prior years, as well as restructuring costs of 3.2 million euro (2 million euro in the first quarter of 2012).
- Total consolidated net profit came to 72.1 million euro (123.6 million euro for the same period of 2012). Increased financial charges (+34.3 million euro) are linked to higher debt, a negative impact of 8.3 million euro from the devaluation of the Venezuelan currency and nonrecurring inflows of 8.7 million euro registered in the first quarter of 2012 and linked to the launch of the Russian activities.
- The consolidated net financial position (negative 1,680.2 million euro compared with 1,205.2 million euro on December 31st, 2012) reflects the seasonality of net working capital. Gross debt stood at 2,476.6 million euro, substantially in line with 2,455.5 million euro at the end of December 2012.
- 2013 Targets presented to financial markets on March 11th 2013 are confirmed. Revenues to increase between 4% and 5% to 6.3-6.4 billion euro, with profitability (Ebit) in the range of 810-850 million euro. Investments are expected at approximately 400 million euro whereas cash generation before dividends and Prelios impact will be positive and above 200 million euro. Net financial position at year-end 2013 is expected to be below 1.2 billion euro before Prelios impact.