Results as of September 30, 2013
Pirelli’s results reflect the strong operating performance in the first nine months of 2013, with growth in emerging markets and improvements in Europe in the third quarter. Exchange rate volatility, especially with regards to South American currencies, limited the solid organic growth performance with a negative impact on revenues of 6.6%.
- Consolidated revenues at 30 September 2013 stand at 4,649.9 million euro, +1.7% from the 4,574.1 million for the same period of the previous year (+8.3% excluding a negative impact of 6.6% linked to exchange rates).
- Premium revenues at 1,675.3 million euro, an increase of 3.9% compared with the corresponding period of 2012 thanks to a positive contribution of +8.6% in Q3. Premium continues to drive growth, with an increase in volumes (+11.7% in the first nine months) three times that of the Consumer segment. Strong growth in emerging markets continues (revenues +25%), in particular in Asia (+32%) and in South America (+29%), while sales in the Nafta area were substantially stable. Premium revenues in Europe progressively improved in the course of the year and grew by 7% in the third quarter.
- Operating result (Ebit) at 581.7 million euro, -3.2% compared with 600.8 million in the corresponding period of 2012 (12.5% on revenues, 13.1% in the first 9 months of 2012). The negative variation of 19.1 million euro is essentially attributable to a forex effect of 37.6 million euro. The positive contribution of volumes (+71.6 million euro), price/mix (+15.7 million euro) and lower raw material costs (+110.4 million euro), together with gross efficiencies, covered the higher production costs, including amortizations. The result was also impacted by restructuring charges of 15.2 million euro.
- Net profit was 258.1 million euro (303.3 million euro in the same period of 2012). Besides the difference in Operating Income, the contraction is due to the indebtedness trend (higher debt and more exposed to emerging markets with interest rates higher than Europe) and a higher tax rate (at 37.1%, 35.6% in the first 9 months of 2012).
- 2013 Targets updated to reflect higher volatility in exchange rates, in particular in the third quarter, and the changes in the Russian tyre market scenario (slowing demand, volumes expected at -4% yoy in FY2013). Consolidated sales expected to be around 6.2 billion euro (about 6.3-6.35 billion euro previously) with profitability (Ebit) at around 790 million euro (previous target around 810 million euro). Investments confirmed at about 400 million euro, cash flow generation confirmed at more than 200 million euro before dividends and Net Financial Position confirmed negative at below 1.4 billion euro, after the reclassification of Prelios’s credit (1.2 billion euro before the Prelios impact).