The Board of Pirelli & C. S.p.A. approves results to 30 June 2019

Results to 30 June 2019

  • Revenues: 2,654.8 million euro, +1.4% at the organic level
  • High Value Revenues: 1,787.6 million euro (+6.2% total variation) thanks to its strengthening in all regions. As a percentage of sales increased to 67.3% from 64.0% on 30 June 2018
  • High Value Volumes: +3.9% because of the prolonged weakness of Original Equipment demand, +5.5% in ‘New Premium’ Car volumes (≥18 inches) with sustained growth in the Replacement channel, +13.1% compared with market’s +10.1%, +14% in second quarter compared with market’s +9.1%
  • Price/mix: +6.4% underpinned by the growing weight of High Value and improvement of product and channel mix
  • Adjusted Ebit before start-up costs: 462.4 million euro (473.3 million in first half 2018) with an Adjusted Ebit margin before start-up costs at 17.4% (18.0% on 30 June 2018) because of demand weakness in Original Equipment
  • Adjusted Ebit: 440.5 million euro (450.1 million on 30 June 2018), with an Adjusted Ebit margin of 16.6% (17.1% on 30 June 2018)
  • Net income related to continuing operations: +68.8% to 307.0 million euro (181.9 million euro on 30 June 2018) in part due to the benefits deriving from the recognition of tax credits in Brazil
  • Net Financial Position excluding the impact of the IFRS 16 accounting principle was negative 4,022.0 million euro (-4,491.8 million euro including the impact of IFRS 16 of 469.8 million euro) compared with 3,180.1 million euro on 31 December 2018 because of the usual seasonality of working capital and the dividend payment of 177 million euro
  • Net cash flow before extraordinary operations/participations and dividends improved (-623.1 million euro compared with -829.7 million on 30 June 2018), with lower cash absorption of 206.6 million euro. In the second quarter of 2019 the net cash flow before extraordinary operations/participations and dividends was positive 72.6 million euro, a marked improvement compared with the second quarter of 2018 (compared with +32.5 million) thanks to the management of working capital



  • Revenues in 2019 expected to grow by between 1.5% and 2.5% (previous indication between +3% and +4%) because of the prolonged weakness of demand in Original Equipment and the changed competitive scenario
  • High Value as a percentage of revenues confirmed at around 67% compared with 64% in 2018
  • Price/mix expected at between +4.5% and +5% (previous indication between +5% and +5.5%) in the face of greater pricing competition, particularly in Standard and High Value products with a lower level of technological content, and the different product and geographic mix.
  • Adjusted ebit margin in 2019 expected at between 18% and 19% (previous indication ≥19%).
  • High Value as a percentage of adjusted ebit before start-up costs confirmed at around 85% compared with 83% in 2018
  • Investments in 2019 at around 380 million euro (previous target around 400 million) consistent with the new market scenario
  • Ratio of net financial position to adjusted Ebitda before start-up costs estimated for the end of 2019 at between 2.33x and 2.20x (between 2.50x and 2.37x including the impact of IFRS16), compared with 2.49x at the end of 2018.
Published on: 1 August 2018, 17:48 CET