04
May
2011
|
12:52
Europe/Amsterdam

The Board of Directors approves results for 3 months to 31 March 2011

ALL INDICATORS IMPROVED CONSOLIDATED NET PROFIT MORE THAN DOUBLED FURTHER INCREASE IN PROFITABILITY 2011 REVENUE TARGET RAISED

 

PIRELLI & C. SPA

 

  • REVENUES 1,400.9 MILLION EUROS, +23.4%  COMPARED WITH 1,135.0 MILLION EUROS ON 31 MARCH 2010

 

  • OPERATING RESULT  (EBIT) AFTER RESTRUCTURING CHARGES 143.3 MILLION EUROS  (+63.6% COMPARED WITH 87.6 MILLION EUROS ON 31 MARCH 2010),  WITH PROFITABILITY (EBIT/SALES) RISING TO 10.2% FROM 7.7%
  • TOTAL CONSOLIDATED NET PROFIT  81.4 MILLION EUROS, MORE THAN DOUBLE COMPARED WITH 38.9 MILLION EUROS ON 31 MARCH 2010; ATTRIBUTABLE CONSOLIDATED NET PROFIT 82.8 MILLION EUROS (39.2 MILLION EUROS ON 31 MARCH 2010)
  • NET FINANCIAL POSITION NEGATIVE 712.8 MILLION EUROS  (678.4 MILLION EUROS ON 31 MARCH 2010),  AFTER TOTAL INVESTMENT ALMOST DOUBLED TO 96.9 MILLION EUROS FROM 50.2 MILLION EUROS IN Q1 2010

 

PIRELLI TYRE

  • REVENUES 1,384.5 MILLION EUROS, +24.7% COMPARED WITH 1,100.0 MILLION EUROS ON 31 MARCH 2010

 

  • OPERATING RESULT (EBIT) AFTER RESTRUCTURING CHARGES 152.4 MILLION EUROS, +59.6% COMPARED WITH 95.5 MILLION EUROS ON 31 MARCH 2010; PROFITABILITY (EBIT/SALES) AT RECORD LEVEL OF 11% (8.6% IN Q1 2010)

2011 TARGETS

  • REVENUE TARGET REVISED FROM “ABOVE 5.55 BILLION EUROS” TO “ABOVE 5.85 BILLION EUROS”.  TAKES INTO ACCOUNT PRICE RISES TO OFFSET RAW MATERIAL COST INCREASES BEYOND INDUSTRIAL PLAN ESTIMATES

 

  • PROFITABILITY TARGETS CONFIRMED: EBIT MARGIN POST GROUP RESTRUCTURING COSTS BETWEEN 8.5% AND 9.5%, PIRELLI TYRE BETWEEN 9% AND 10%
  • INVESTMENT ABOVE 500 MILLION EUROS CONFIRMED AND NET FINANCIAL POSITION EXPECTED AT AROUND NEGATIVE 700 MILLION EUROS

A meeting of the Board of Directors of Pirelli & C. SpA today reviewed and approved results for the three months ended 31 March 2011. Overall, the group closed the quarter with all economic indicators showing improvement. Revenues were 23.4% higher at 1,400.9 million euros and the Ebit margin was 10.2% (7.7% at the end of the first quarter 2010). The total consolidated net result was positive 81.4 million euros, more than doubling the 38.9 million euros of the first quarter 2010. For Pirelli Tyre, which accounts for almost all Group sales (98.8%), the quarter saw a further increase in sales (+24.7% to 1,384.5 million euros) and further gains in profitability, which reached a record level of 11.0%, calculated as the operating result (EBIT) over sales, a marked improvement compared with 8.6% in the first quarter 2010 and 9.8% in the fourth quarter 2010.  In the context of a market that grew overall, these results were achieved thanks to the ongoing improvement of the sales’ mix – always more Premium products in line with Pirelli’s strategy -  and the ability to leverage prices to offset increases in raw material costs, as well as continuing efficiency improvement. Of note in the quarter, Pirelli debuted as the exclusive supplier of tyres for the Formula One world championship after signing an agreement in June 2010 for the 2011-2013 seasons. Further, in line with the 2011-2013 Industrial Plan, and with the aim of increasing production capacity particularly in the Nafta Area, work began on the new plant in Mexico where production will consist exclusively of premium tyres. With regard to new products, the quarter saw the launch of the “Cinturato P1”, the “green performance” tyre with very high technological content designed for small and medium-sized cars. This new tyre reduces fuel consumption, is more environmentally friendly and delivers performance on all surfaces. The economic data for 2010 have been reclassified to include the activities of Pirelli RE and Pirelli Broadband Solutions as discontinued operations, following their disposal during the course of  2010. PDF Version (76KB)