PIRELLI & C. S.P.A. BOARD APPROVES RESULTS FOR YEAR TO 31 DECEMBER 2017
2017 Results in line with guidelines of 2017-2020 industrial plan
- Revenues:+7.6% to 5,352.3 million euro (4,976.4 million in 2016), +7.9% organic growth
- Marked growth in High Value segment: revenues +11.8%, equal to 57.5% of sales (55.3% in 2016). Weight on adjusted Ebit before start-up costs rises to around 83% (81% in 2016)
- Price/mix strong improvement: +6.9% in 2017 and +7.8% in fourth quarter
- Adjusted Ebit before start-up costs: +9.7% to 926.6 million euro (844.3 million in 2016), with a margin on revenues increasing to 17.3% (17.0% in 2016). In the fourth quarter margin at 18.7% (17.6% in fourth quarter 2016)
- Net income for continuing operations: +60.5% to 263.3 million euro (164.0 million in 2016)
- Net financial position at 3,218.5 million euro (4,912.8 in 2016, 4,960.7 for Consumer activities alone)
- Ratio NFP/Adjusted Ebitda before charges and start-up costs improves to 2.7 times (4.6 times in 2016)
- Apac and Nafta confirmed as most profitable areas
- Investments in R & D in 2017 at 221.5 million euro (4.1% of sales) of which 199.9 million euro for High Value activities (6.5% of High Value revenues)
- 2017 saw significant results in sustainability, plan targets updated in line with High Value strategy
- 2018 revenues expected to grow by 6% or more, or about +10% excluding forex effects, with weight of High Value at about 60% (57.5% in 2017)
- Adjusted Ebit before non-recurring and restructuring charges and start-up costs estimated at over 1 billion euro (926.6 million euro in 2017), with High Value segment accounting for 83% or more (about 83% in 2017)
- Adjusted Ebit before non-recurring charges foreseen at about 1 billion euro (876.4 million in 2017)
- Ratio between net financial position and adjusted Ebitda before non-recurring and restructuring charges and before start-up costs estimated at end 2018 at about 2.3 times (2.7 times in 2017)
As a consequence of the assignment by Pirelli & C. S.p.A. to Marco Polo International Italy of the shares of TP Industrial Holding, the company into which the Industrial assets of Pirelli were conferred, the Industrial business is qualified as a “discontinued operation”. The result for the period of the discontinued operation was reclassified in the accounts under the heading “results for disposed operating activities”. The comparative data for 2016 have been restated.
Milan, 26 February 2018 - The Board of Directors of Pirelli & C. S.p.A. reviewed and approved results for the 12 months which ended on December 31, 2017 which show growth of the main economic indicators.
The results for 2017 were in line with the guidelines set out in the Industrial Plan for 2017-2020. In particular: Pirelli’s strengthening in High Value with the progressive reduction of exposure to the standard segment, the consequent improvement of the price/mix component, further reinforcement of partnerships with Prestige and Premium car makers, increased High Value production capacity, extension of the distribution network coverage in Europe, Nafta, Apac and LatAm and the continual development of business programs that intercept the new needs of the end customer (such as Cyber and Velo). These are accompanied by plans for the company’s digital transformation and the conversion of Aeolus brand production to the Pirelli brand in the Jiaozou Aeolus Car plant.
Published on: 26 February 2018, 15:34 PM CET