Pirelli closed the 2014 financial year with revenues of over 6 billion euros (99,8% made up of the Tire business), and an organic growth of 5,9% compared to the corresponding period of 2013.
Including the negative exchange rate impact of 6,6%, revenues decreased by 0,7%. EBITDA before restructuring charges grew by 6,7% to 1,168 billion euro, with an incidence on turnover of 19,4% and an improvement on an annual basis of more than one percentage point (18,1% ebitda margin in 2013).
The operating result (Ebit) before restructuring costs amounted to 869 million euros, up by 7,3% compared to the end of 2013. The consolidated net financial position was negative by approximately 980 million euros, a clear improvement compared to 1.322,4 million euros at the end of 2013 compared to 2.003,9 million euros at 30 September 2014. During 2014, investments were made totaling approximately 378 million euros (413,1 million in 2013), mainly for 'increase in Premium capacity in Europe, NAFTA and China, and improve the mix.
The fourth quarter shows revenue growth of 1,0%, equal to 1.489 million euros (1.474,6 million euros in the corresponding period of 2013), with an organic increase of 4,1%. In the fourth quarter, EBITDA amounted to 300 million euros, up 4,2% compared to 2013. The outlook for 2015 indicates an Ebit of around 930 million euros after non-recurring and restructuring charges investments of less than 400 million euros and cash generation before dividends of more than 300 million euros. The strategy focuses on China and mature markets, which Pirelli believes "will be the drivers of development of the world economy and will compensate for the volatility of the South American and Russian economies".
The world market for car tires is expected to grow by 2,5% (about 1,46 billion pieces) driven by the development of the Premium segment which is expected to grow by 7% and with a weight of 25% of the global car tire market. In this scenario, Pirelli confirms its strategy of focusing on Premium with the aim of improving its positioning in mature markets and seizing the many growth opportunities in emerging countries.
