Pirelli closed the 2018 financial year with a “adjusted” operating profit up 9%, to 955 million euro. Profits amounted to 18,4% of revenues, which reached 5,2 billion euros (+3,7% on 2017). The two figures are substantially in line with the analysts' forecasts and with the objectives announced by the company, which indicated an adjusted EBIT of approximately 1 billion and revenues of 5,2 billion.
For 2019, Pirelli expects an increase in turnover between 4% and 6% and an adjusted ebit margin improving to approximately 19%. At the end of the year, the ratio between the net financial position and adjusted EBITDA before start-up costs should reach 2,1, from 2,49 at the end of 2018 (2,35 the company's target). At the end of 2017, the ratio was 2,7 times. The tire group confirmed its goal of bringing the ratio between net financial position and adjusted EBITDA to less than 2 times.
Pirelli has also announced that, during the course of the year, it will present a new industrial plan with a horizon of 2022.
As for the other 2018 numbers, December 31, 2018 the net financial position it was negative by 3,18 billion euros (4,038 billion at the end of 2017), including 140 million between advances on financial investments in the joint venture in China and restructuring operations in Brazil.
Il net cash flow from operations it was positive for 338 million (against +772 million in 2017). Last year, investments amounted to 463,4 million and for 2019 the group expects investments of 430 million.
As for revenues, the “high value” tire sector it represented 63,7% (equal to 3,3 billion) of total turnover, increasing the incidence on the total compared to 57,5% a year ago and reported an increase in terms of volumes of 11%. Overall, volumes decreased by 3,1%.
