PIRELLI: BOARD APPROVES RESULTS TO 30 SEPTEMBER 2017
Our focus on High Value reflected in the main economic indicators - Revenues increase by 9% to 4,038.5 million euro (3,706.5 million euro on 30 September 2016) - Further strengthening of the High Value segment: volumes +13% and revenues +13%,with a 58% incidence over total sales (56% on September 30, 2016) - Improvement of price/mix: +6.5%, the highest in the sector, thanks to the sales mix and price increases. Price/mix in third quarter+7.3% - Efficiencies amounting to 1% of Revenues in the first nine months of 2017 - Adjusted Ebit before charges and start-up costs: +9.7% to 681.2 million euro (620.7 million euro on 30 September 2016) - Adjusted Ebit Margin before charges and start-up costs increased to16.9% (16.7% on 30 September 2016). In the third quarter margin at 17.6% (16.2% in third quarter 2016) - Investments of 327.6 million euro (221.9 million euro on 30 September 2016) - Net profit for ongoing operations (Consumer) at 198.9 million euro (35.8 million euro on 30 September 2016) - Net financial position at 4,287.7 million euro (4,912.8 on 31 December 2016, 4,960.7 relative to Consumer Activities alone) with a ratio to Adjusted Ebitda before charges and start-up costs of 3.7 times (4.6 times on 31 December 2016) - Apac and Nafta confirmed as the most profitable areas
2017 OUTLOOK
- 2017 revenues expected to grow by about 9%, with the weight of High Value above 57% (55% at end 2016) - Adjusted Ebit before non-recurring and restructuring charges and before start-up costs seen at about 930 million euro (844 million euro at end 2016), with the High Value segment accounting for about 83% (81% at end 2016) - Adjusted Ebit before non-recurring charges expected to be about 880 million euro (844 million euro at end 2016) - Ratio of net financial position to Adjusted Ebitda before non-recurring and restructuring charges and before start-up costs at end 2017 estimated at below 3 times (4.6 times at end 2016)
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As an effect 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 Pirelli’s Industrial assets were conferred, the Industrial business is qualified as a “discontinued operation”. The result for the period for the discontinued operation was reclassified in the results under the heading “results for discontinued operational activities”. The comparative economic data for 2016 have been restated.
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Milan, 6 November 2017 - The Board of Directors of Pirelli & C. S.p.A. reviewed and approved the group’s results for the nine months which ended on 30 September 2017 and saw growth of the key economic indicators. The results for the first nine months are in line with the strategy defined in the 2017-2020 industrial plan and reflect in particular: the reinforcement of Pirelli at the high end with the progressive reduction of its exposure to the standard segment, the consequent improvement of the price/mix component, the further reinforcement of partnerships with Prestige and Premium car makers, the increasing High Value production capacity, the increasing of distribution coverage in Europe, Nafta, Apac and LatAm and the ongoing development of business programmes that intercept the new needs of the end customer (such as Cyber and Velo). This is also accompanied by a programme for the company’s digital transformation and the reconversion of Aelous brand production to Pirelli brand in the Jiaozuo Aeolus Car factory.
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Published on: Nov 6, 2017, 10:35 AM CET