THE BOARD OF PIRELLI & C. S.P.A. APPROVES RESULTS TO 30 JUNE 2018
- Revenues posted organic growth of 5.5% to 2,630.3 million euro, the overall variation -2% taking into account the forex effect (-6.9%) and variation in accounting principles (-0.6%)
- Strengthening of High Value segment: +12.7% organic revenue growth, equal to 64.0% of sales (58.2% in first half 2017).
- High Value volumes growing by 13.1%, including +18.3% of Car New Premium ≥18 inches
- Price/mix saw significant improvement: +6.7% in first half 2018 (+5.9% in first half 2017)
- Adjusted Ebit before start-up costs: +6.8% to 473.3 million euro (443 million euro in first half 2017), with a margin on revenues increasing to 18% (16.5% in first half 2017)
- Net profit from continuing operations: +169% to 181.9 million euro (67.6 million euro in first half 2017)
- Net financial position at 3,916.5 million euro (4,176.5 million euro in first half 2017)
- 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 the NFP/Adjusted Ebitda ratio before start-up costs)
- The strengthening of High Value was confirmed (>60% weight on revenues, >83% weight on Adjusted Ebit before start-up costs); further acceleration in the reduction in the standard segment
- Expected revenues of ~5.4 billion euro; the growth in High Value volumes (≥+13% growth in volumes) and the price mix (+6.5%/+7.5%) was confirmed
- Ning Gaoning co-opted to the Board and appointed Chairman
- Approved repurchase of bond issues up to 150 million euro
As a result of the assignment in the month of March 2017 by Pirelli & C. S.p.A. to the controlling company Marco Polo International Holding Italy S.p.A. of the shares of TP Industrial Holding S.p.A., the company into which were conferred almost the totality of Pirelli’s Industrial assets, in continuity with 2017 some residual Industrial activities in Argentina (separation completed in 2018) and in China (separation expected in during 2018) are qualified as “discontinued operations”.
Please note also that the comparative data at 30 June 2017 refer to the Carve Out financial statement at 30 June 2017 prepared in accordance with the IAS 34 in order to represent the assets, liabilities, revenues and costs directly attributable solely to Consumer activities, approved by the Board of Directors on 28 July 2017 and included in the registration document prepared for the authorization for admission for listing of Pirelli shares on the Mercato Telematico Azionario organized and managed by Borsa Italiana SpA.
Milan, 7 August 2018 - A meeting of the Board of Directors of Pirelli & C. S.p.A. today reviewed and approved the results for the six months which ended on June 30, 2018. The first half performance was in line with the path focused on High Value and shows growth of all key economic indicators. In particular:
- the organic growth of revenues thanks to the Pirelli’s strengthening position in High Value in all Regions alongside a progressive reduction of the exposure to the standard segment;
- the improvement of price/mix;
- the further increase of profitability by 1.5 percentage points to 18% (Adjusted Ebit margin before start-up costs against revenues);
- the further strengthening of partnerships with Prestige and Premium car makers;
- the increasing of High Value production capacity mainly in Europe and Nafta;
- the reinforcement of distribution coverage in Europe, Nafta, Apac and LatAm;
- the development of business progammes that intercept the new needs of end customers (such as Cyber and Velo). These are accompanied by projects for the digital transformation of the company and the reconversion of Aeolus branded production to Pirelli branded in the Jiaozou Aeolus Car factory.