PIRELLI & C. SPA
• REVENUES: 1,536.3 MILLION EURO (-1.3% COMPARED WITH 1,556.5 MILLION EURO ON 31 MARCH 2012) – REVENUES GREW 3.6% NET OF EXCHANGE RATE EFFECT
• TOTAL VOLUMES +3.9%, WITH PREMIUM +4% AND INDUSTRIAL BUSINESS +11.7%
• EBIT 179.8 MILLION EURO (-15.5% COMPARED WITH 212.7 MILLION EURO ON 31 MARCH 2012), WITH AN EBIT MARGIN OF 11.7% (13.7% ON 31 MARCH 2012)
• NET PROFIT 72.1 MILLION EURO (-41.7% COMPARED WITH 123.6 MILLION ON 31 MARCH 2012)
• NET FINANCIAL POSITION NEGATIVE 1,680.2 MILLION EURO
(1,205.2 MILLION EURO ON 31 DECEMBER 2012)
• REVENUES 1,526.7 MILLION EURO (-1% COMPARED WITH 1,542.6 ON 31 MARCH 2012) – UP 3.9% NET OF EXCHANGE RATE EFFECT
• EBIT 185.6 MILLION EURO (-15.1% COMPARED WITH 218.5 MILLION EURO ON 31 MARCH 2012) WITH AN EBIT MARGIN OF 12.2% (14.2% ON 31 MARCH 2012)
• CONSUMER BUSINESS EBIT MARGIN 12.2% (16.1% ON 31 MARCH 2012)
• INDUSTRIAL BUSINESS EBIT MARGIN 12.1% (8.5% ON 31 MARCH 2012)
2013 TARGETS CONFIRMED
TOTAL EXPECTED REVENUES BETWEEN 6.3 BILLION EURO AND 6.4 BILLION EURO
CONSOLIDATED EBIT BETWEEN 810 MILLION EURO AND 850 MILLION EURO, WITH MARGIN IN LINE WITH OR SLIGHTLY HIGHER THAN 2012
INVESTMENT APPROXIMATELY 400 MILION EURO
CASH GENERATION BEFORE DIVIDENDS POSITIVE AND ABOVE 200 MILLION EURO, EQUAL TO ABOUT 3% OF SALES
NET FINANCIAL POSITION BELOW 1.2 BILLION EURO BEFORE RECLASSIFICATION
OF PRELIOS CREDIT
Following the implementation from January 1st, 2013 of the new IAS 19 revised “Benefits for employees” principle, data relative to 2012 have been restated..In the present document, comments on variations compared with the first quarter of 2012 always refer to restated data, unless otherwise indicated.
Pirelli & C. SpA
Milan, 7 May 2013 – The Board of Directors of Pirelli & C. SpA today reviewed and approved intermediate results for the three months ended 31 March 2013.
The first quarter of 2013 was characterized by an economic scenario still strongly influenced by the crisis affecting Europe, where the demand for goods and services continues to shrink.
In total, the European market has undergone a decline compared with 2012, which is more marked in the Consumer segment where the replacement channel fell by 11%. In this channel, the Premium segment was also impacted and saw a decline, although not as steep as the overall figure.
The performance of South American markets in both segments was positive, as was China in the Consumer segment. In these areas the Premium segment continued to grow, positive also in the Nafta area. The Group results were as a consequence affected by overall macro-economic performance, with a decline of sales and results in Europe, partially offset by growth in other geographic areas.
Consolidated revenues on March 31st, 2013 stood at 1,536.3 million euro, a decrease of 1.3% compared with 1,556.5 million euro in the first quarter of 2012. The figure includes a negative impact of -4.9% linked to exchange rates, essentially because of the devaluation of South American, Japanese, U.K. and Egyptian currencies. Net of the exchange rate effect, overall revenues grew by 3.6%.
The gross operating margin (EBITDA) before restructuring costs was 255.3 million euro, a decrease of 8.5% compared with 279.1 million euro in the same period of 2012.
The operating result (EBIT) was 179.8 million euro, with profitability at 11.7%, a decline compared with 212.7 million euro in the first quarter of 2012 (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).
The result from shareholdings on March 31st, 2013 was negative 6.6 million euro and primarily reflects the consolidation, using the net equity method, of Rcs Mediagroup, negative 6.8 million euro.
The total consolidated net profit came to 72.1 million euro, a decline of 41.7% compared with 123.6 million euro for the same period of 2012. The result was impacted by an increase in financial charges, 58.6 million euro compared with 24.3 million euro for the same period of 2012, and essentially due an increase in debt, a negative impact of 8.3 million euro from the devaluation of the Venezuelan currency and non-recurring inflows of 8.7 million euro registered in the first quarter of 2012 and linked to the launch of the Russian activities. Net profit attributable to Pirelli & C. Spa amounted to 72.9 million euro, compared with 121.3 million euro in the same period of 2012.
Consolidated net assets on March 31st, 2013 stood at 2,449.9 million euro compared with 2,320.1 million euro on March 31st, 2012. Consolidated net assets attributable to Pirelli & C. SpA amounted to 2,399.3 million euro, compared with 2,274.6 million euro on March 31st, 2012.
The consolidated net financial position was negative 1,680.2 million euro compared with 1,305.0 million euro in the first quarter of 2012 and 1,205.2 million euro on December 31st, 2012, as a consequence of the seasonality of net working capital, while gross debt stood at 2,476.6 million euro, substantially in line with 2,455.5 million euro at the end of December 2012.
Net operating cash flow in the first quarter of 2013 was negative 316.8 million euro, as a consequence of seasonality of working capital which absorbed cash to a value that was however lower than for the same period in 2012, and after investments of 79.7 million euro, in line with the 80.1 million euro of the first quarter of 2012.
Total net cash flow improved, passing from negative 567.9 million euro in the first quarter of 2012 to -475.0 million euro, of which about 50 million euro relative to the impact on the net financial position of exchange rate variations, in particular with reference to Venezuela.
Group employees on March 31st, 2013 numbered 37,846 (36,068 on March 31st, 2012).