Pirelli archives the first six months of 2019 with a turnover of 2,655 billion, recording an "organic growth" of 1,4% on an annual basis "thanks to the positive performance of the High Value segment". The group communicates this in a note released at the end of the board meeting which approved the accounts.
The overall increase of revenues it was 0,9%, given that it includes “the effect of exchange rates and the adoption of the accounting standard Ias 29 to take into account the high inflation in Argentina (for an overall impact of -0,5%)”.
Il Net income of continuing assets reached 307 million, an increase of 68,8% compared to the 181,9 million recorded in the January-June period last year. The benefit deriving from tax credits in Brazil for 102 million euros also contributed to this result", the group specifies.
On the other hand, Pirelli had to lower the targets for 2019: now estimates that i revenues will grow between 1,5% and 2,5% over the year (the gap previously forecast was +3-4%), supported by the strengthening of High Value, which will continue to weigh approximately 67% on revenues.
The estimates on overall volumes are for a decrease between 2,5% and 2% (the previous forecast was -1%) against more cautious expectations on the "Original equipment" demand and on the Standard segment in South America.
As for the segment alone High Value, Pirelli expects growth between 7,5% and 8% (previously estimated to exceed +9%), while for the Standard volumes a drop between 12% and 11,5% is estimated (from -11%).
Investments will be approximately 380 million euro, down on the 400 million previously indicated, "in line with the new market scenario".
Adjusted Ebit margin expected to be between 18% and 19% (the previous indication is greater than or equal to 19%). Ratio between net financial position and adjusted Ebitda without start-up costs estimated at the end of 2019 between 2,33 times and 2,20 times (between 2,50 times and 2,37 times including the IFRS16 impact), compared to 2,49 times at the end of 2018.
