Board of Pirelli & C. S.p.A. approves consolidated results to 31 March 2020




Board of Pirelli & C. S.p.A. approves consolidated results to 31 March 2020

  • Revenues: 1,051.6 million euro, a decline of 20% compared with 31 March 2019 (organic variation -18.5%) because of sharp drop in demand
  • Adjusted ebit: 141.1 million euro with margin at 13.4% (16.7% in Q1 2019), with impact limited by efficiencies and cost cuts
  • Total net profit: 38.5 million euro (101.4 million euro in Q1 2019)
  • Net cash flow: -753.5 million euro, substantially in line with -712.9 million euro in Q1 2019
  • Net Financial Position: -4,261 million euro (-4,387.3 million euro on 31 March 2019)
  • Liquidity margin: 2,115 million euro on March 31, 2020, assures coverage of financial debts for about 3 years


  • 2020 targets announced on 3 april confirmed


Milan, 13 May 2020 – The Board of Directors of Pirelli & C. Spa, met today and approved results for the three months that ended on 31 March 2020.

In the first quarter of 2020, the tyre sector, like others, was significantly impacted by the Covid-19 emergency at the global level and by the related lockdown measures, with a general deterioration of economic conditions, fall in consumption and production.

In the first quarter, the demand for car tyres registered a fall of 20% in sales’ volumes, in both Original Equipment (-22.7% in line with car production) and Replacement (-19.3% because of restrictions on mobility). The fall in demand struck the Standard segment in particular (-22% for Car tyres ≤17’’) and to a lesser degree New Premium (-11.6% for Car tyres ≥18’’), the more resilient segment.

During the quarter, production at Pirelli underwent significant discontinuities because of the suspension of activities in countries where this became progressively necessary both to protect workers’ health, which is the company’s primary goal, and because of the marked fall in demand.

The experience gained in China, where production and commercial activities are returning to normal, enabled Pirelli to respond quickly to the deep changes in the global scenario, defining an action plan and new 2020 targets, announced to the market on April 3, 2020

This plan, the first benefits of which were be seen in the first quarter, calls for a series of actions to:

  • guarantee the health and safety of employees, adopting all necessary preventative measures;
  • protect profitability and cash generation, through cost containment and remodeling of the investment program;
  • reinforce the asset structure. To this end, the underwriting of a new sustainable bank line (already announced to the market) of 800 million euro (5 year) and, in general, the optimization of the financial structure lengthening debt maturities;
  • prepare for the recovery phase, through the gradual reopening of plants, close cooperation with the sales’ network (for example through the adoption of healthcare rules and digitalization of services), a simplification of the product range with greater focus on Specialties and products with ≥19 inch rim sizes.

Pirelli’s first quarter 2020 results were characterized by:

  • revenues of 1,051.6 million euro, a decline of 20% compared with the first quarter of 2019 (organic variation -18.5%) because of fall in demand mentioned earlier. High Value revenues accounted for 69.6% of total revenues (+1.5 basis points compared with 68.1% of the first quarter 2019);
  • profitability (adjusted ebit margin) at 13.4% (16.7% in the first quarter of 2019). Adjusted ebit was 141.1 million euro. The contribution of efficiencies and cost containment actions (at about 64 million euro) limited the impact of the external context (demand weakness, price pressure, forex volatility and cost increases in production elements);
  • total net profit of 38.5 million euro (101.4 million euro in the first quarter of 2019), equal to 3.7% of revenues;
  • net cash flow of -753.5 million euro, substantially in line with the trend of the first quarter of 2019 (-713 million euro). Lower investment and improved financial management mitigated the impact of the operating performance.
  • Net financial position on March 31, 2020 was negative 4,261 million euro (-3,507.2 on December 31, 2019, and 4,387.3 million euro on March 31, 2019).
  • Liquidity margin of 2,115 million euro, with debt maturities guaranteed for around 3 years thanks also to the company’s right to extend bank debt maturing in 2022 (about 1.98 billion euro on 31 March 2020) until 2024.


Published on: 13 May 2020, 17:52 CET