The Board of Pirelli & C. S.p.A. approves results to 30 September 2018
PIRELLI: REVENUES’ ORGANIC GROWTH OF 4.4%, ADJUSTED EBIT BEFORE START-UP COSTS UP +7.5% AND NET PROFIT +90.1%
Results to 30 September 2018
- Organic revenues growth of 4.4% to 3,925.2 million euro
- Strengthening of High Value segment: +11.5% organic revenue growth, increasing to 64.5% of sales (58.1% on 30 September 2017)
- High Value volumes grew by 12.1%. Car ‘New Premium’ above 18 inch grew by 16.5%
- Price/mix improvement to +6.2% thanks to the growing weight of High Value and mix improvement
- Adjusted Ebit before start-up costs: +7.5% to 732.1 million euro (681.2 million on 30 September 2017), with a margin on sales for the nine months rising to 18.7% (16.9% on 30 September 2017).
- Net profit for continuing operations: +90.1% to 378.1 million euro (198.9 million on 30 September 2017)
- Net financial position at 4,038.3 million euro (4,287.7 million euro on 30 September 2017)
- Profitability targets confirmed with an Adjusted Ebit before start-up costs above 1 billion euro and Adjusted Ebit at approximately 1 billion euro
- Strengthening of High Value confirmed (about 64% of revenues, >83% of Adjusted Ebit before start-up costs); further acceleration of the reduction of the standard segment also as a consequence of the weakness in South America
- Revenues expected at ~5.2 billion euro impacted by the decline in South America; High Value volumes expected to grow by about +13%, price/mix expected at around +6.5%***
As a result of the assignment in March 2017 by Pirelli & C. S.p.A. to the parent company Marco Polo International Holding Italy S.p.A., of the TP Industrial Holding S.p.A. shares, the company into which almost all of Pirelli's Industrial assets had been merged, and in continuity with the 2017 financial year, some residual activities in China and Argentina relative to the Industrial business, qualified as "discontinued operations". The results for the period for “discontinued operations” were classified to the Income Statement as a single item, "net income (loss) related to discontinued operations". The separation process for Argentina was completed in the month of June 2018, and for China is expected to be mostly completed during the course of the current financial year.