The Board of Pirelli & C. S.p.A. approves results to 31 March 2019
Results to 31 March 2019
- Revenues at 1,313.8 million euro, +1.2% at the organic level
- High Value Revenues: +7.3% to 895 million euro (+5.3% at the organic level) thanks to strengthening in all regions. Accounting for 68.1% of sales, up from 63.6% on 31 March 2018
- High Value Volumes: +4.5%, of which +6.7% volumes from Car ‘New Premium’ (≥18 inches). Volumes growth of 12.1% of New Premium in the Replacement Channel
- Price/mix: +7.7% supported by growing weight of High Value and improvement in product and channel mix
- Ebit Adjusted before start-up costs at 230.7 million euro (229.4 million in first quarter 2018) with an Adjusted Ebit margin before start-up costs of 17.6% (17.5% on 31 March 2018)
- Adjusted Ebit at 219.2 million euro (218.4 million on 31 March 2018), with an Adjusted Ebit margin of 16.7% (unchanged from 31 March 2018)
- Net profit from continuing operations: +9.7% to 101.4 million euro (92.4 million euro on 31 March 2018)
- Net Financial Position, excluding the impact of the IFRS 16 accounting principle, negative 3,913.0 million euro (-4,387.3 million euro including the 474.3 million euro impact of IFRS16), an increase from 3,180.1 million euro on 31 December 2018 because of the usual seasonality in working capital but an improvement compared with 3,938.9 million euro on 31 March 2018 which benefitted from the impact shareholdings and extraordinary operations of 141.8 million euro.
- Net cash flow before extraordinary operations/participations improved, with cash absorption down by 162.2 million euro compared with 31 March 2018.
- Revenues in 2019 are expected to grow by between 3% and 4% (previous indication 4% to 6%) because of the prolonged weakness of demand in Original Equipment
- High Value confirmed at around 67% of revenues, an improvement from 64% in 2018
- Improvement of profitability confirmed: 2019 adjusted Ebit margin foreseen at ≥19% (prior indication around 19%), compared with 18.4% in 2018.
- High Value confirmed at around 85% of Adjusted Ebit before start-up costs compared with 83% in 2018
- Investments in 2019 at around 400 million euro (previous target around 430 million euro) consistent with the new market scenario
- Ratio between Net Financial Position and Adjusted Ebitda before start-up costs, estimated at around 2.1x at end 2019 (2.3x including IFRS16 impact)