THE PIRELLI & C. S.P.A. BOARD OF DIRECTORS APPROVES THE 31 MARCH 2018 RESULTS
- Revenues in organic growth of 5.7% to 1,310.3 million euro (1,339.3 million euro in first quarter 2017), the overall variation -2.2% after exchange rate impact of -7.3%
- Marked growth in High Value segment: organic growth of revenues +13.4%, with a percentage on turnover of 63.6% (57.9% in first quarter 2017). High Value volumes growing by 12.8%
- Price/mix strong improvement: +7.2% in first quarter 2018 (+5.5% in first quarter 2017)
- Adjusted Ebit before start-up costs: +4.5% to 229.4 million euro (219.5 million euro in first quarter 2017), with a margin on revenues increasing to 17.5% (16.4% in first quarter 2017)
- Net income from continuing operations: +86.7% to 92.4 million euro (49.5 million euro in first quarter 2017)
- Net financial position at 3,938.9 million euro (5,525.2 million euro in first quarter 2017)
***
2018 FORECASTS
- Profitability targets confirmed (Adjusted Ebit before start-up costs >1 billion euro and Adjusted Ebit at ~1 billion euro) and Net Financial Position (~2.3x ratio of NFP/Ebitda Adjusted before start-up costs)
- Strengthening of High Value (≥60% weight on revenues, ≥83% weight on Adjusted Ebit before start-up costs)
- Organic revenue growth expected at equal or above +9% (~+4% including forex effect and the application of new IFRS 15 accounting principle)
***
As a consequence of the assignment in March 2017 by Pirelli & C. S.p.A. to the parent company Marco Polo International Holding Italy S.p.A. of the shares of TP Industrial Holding S.p.A., the company into which almost all of Pirelli’s Industrial assets were conferred, in continuity with the 2017 financial year, some residual activities in China and Argentina relative to the Industrial business are qualified as a “discontinued operation”. The separation process is expected to be completed during the financial year.
***
Milan, 14 May 2018 - The Board of Directors of Pirelli & C. S.p.A. reviewed and approved the 31 March 2018 results, which are in line with the programme of focus on High Value, and highlight growth of the key economic indicators. In particular:
• the organic growth of revenues thanks to Pirelli’s strengthening in High Value in all Regions, with the progressive reduction of its exposure to the standard segment;
• the improvement of the price/mix component;
• the improvement of profitability by 1.1 percentage points to 17.5%;
• the further reinforcement of partnerships with Prestige and Premium car makers;
• the expansion of High Value production capacity, mainly in Europe and Nafta;
• the extension of the distribution network coverage in Europe, Nafta, Apac and LatAm;
• the continual development of business programmes that intercept the new needs of the end customer (such as Cyber and Velo). These are accompanied by the plans for the company’s digital transformation and the reconversion of Aelous brand production to the Pirelli brand in the Jiaozuo Aeolus Car plant.
Published on: 14 May 2018, 17:43 CET
Categories: Corporate Investors Pirelli Sustainability