Pirelli's profit in the first half year grew by 28,5% to 192,1 million euro and confirmed all targets. The group released the results on closed markets (-1,35% on the Stock Exchange awaiting the accounts) with all the main economic indicators showing growth. Revenues amounted to 2,98 billion (+6,7% in organic growth; -3,3% including the exchange rate effect) and EBIT amounted to 426,2 million (+12,6%).
The result was achieved, says a note, thanks to the "strengthening of the Premium segment, the continuous improvement of the price/mix and the implementation of the efficiency plan". In fact, the Premium segment recorded a growth in volumes of 21,6% (+20,9% in the second quarter). The price/mix recorded a growth of 5,3% (+6% in the second quarter), as an improvement in the product mix across all businesses and price increases in emerging countries to counter exchange rate volatility.
The efficiency plan went ahead, with the achievement of benefits of 48,9 million euros in the half-year, 54% of the annual target, as the first results of the four-year plan (2014-2017) for 350 million euros announced in November 2013. Geographically, Pirelli highlights the positive trend of the business in Europe and Asia Pacific with revenue growth of around 10% and a profitability (Ebit margin) above the group average. South America confirms its "mid-teen" profitability thanks to price increases to counter exchange rate volatility, improved mix (product and channel) and the contribution of efficiencies. In Russia, in particular, the turnaround process continued, with an increase in market share, thanks to the expansion of the product range and greater coverage of the territory, and positive "high single digit" profitability.
For the current year Pirelli has confirmed, on a constant basis of consolidation, a turnover forecast of around 6,2 billion euros (+1%), Ebit of 850 million, investments of less than 400 million euros, generation cash flow before dividends in excess of 250 million and a net financial position of approximately 1,2 billion euro.
