Revenues of 4,53 billion, with organic growth of 6,6% (on a like-for-like basis and net of the exchange rate effect, negative by 6,7%) thanks to the strong improvement in the price/mix component (+5,5%) due to the increases in emerging markets, higher sales in the Replacement channel and the different geographical and product mix: this is the result that emerges from the Pirelli board of directors which met on November 16 to examine the data of first nine months of 2016. A result that highlights an accelerating growth of the main economic indicators. In particular, in the third quarter.
The increase in organic revenues was supported by the performance of business consumer Organic growth (+8,2% in the first nine months, +10% in the third quarter alone) thanks to the performance of Premium segment the positive performance of sales on mature markets, in Apac and Meai, while the Industrial segment (+0,3% organic growth in the first nine months, +0,1% in the third quarter) suffers from the persistent weakness of the tire market in South America and other emerging markets.
Also volumes show a progressive improvement (+1,2% in the first nine months of 2016, +3,7% in the third quarter) thanks to the Consumer business (+3,1% in the first nine months, +5,5% in the third quarter) due to growth sustained on mature markets and the recovery of sales on emerging markets. The trend of volumes in the industrial segment (-6,2% in the first nine months, -3,8% in the third quarter) reflects the aforementioned weakness of the truck and agro markets, especially in South America. Further strengthening of Premium with volume growth of 14,2% (+15,9% in the third quarter) higher than the global Premium market trend (+9,0% in the first nine months and in the third quarter). The organic revenues of the segment increased by 11,7% to 2.443,1 million euros, with an overall incidence on Consumer revenues growing to 64,6% from 62,2% in the corresponding period of 2015 on a like-for-like basis;
In profitability is also improved thanks to the effect of internal levers such as the price/mix and the efficiencies achieved to counter exchange rate volatility and the downturn in some markets mainly in the Industrial business. In particular, the Ebitda margin before non-recurring and restructuring charges grew to 19,2% compared to 19,0% in the corresponding period of 2015 on a like-for-like basis. Ebitda before non-recurring and restructuring charges amounted to 872,1 million (€861,9 million in the corresponding period of 2015 on a like-for-like basis).
The Adjusted Ebit margin (operating result before non-recurring charges, restructuring charges and amortization of intangible assets) shows growth to 14,4% compared to 14,1% in the first nine months of 2015 on a like-for-like basis. Adjusted Ebit is equal to 655 million (€638,2 million in the first nine months of 2015 on a like-for-like basis). Efficiencies of 68,1 million should also be recorded. Since 2014, a total of efficiencies of 254,9 million euros have been achieved, equal to 73% of the four-year 2014-2017 target of 350 million. At a geographical level, profitability improved in Europe and NAFTA thanks to strong growth in the Premium segment. Apac is confirmed as the area with the highest profitability with an Ebit Margin above 20%.
On the other hand, the result of equity investments was negative for 52,7 million euro (-6,2 million in the corresponding period of 2015) mainly attributable to the impacts deriving from the write-downs and value adjustments of the associates Fenice Srl and Prelios Spa. Equity investments that had a negative impact on the total net result of 22,7 million against 276,6 2015 million in the same period of 202,9. The increase in net financial expenses of 150 million also weighs heavily, mainly attributable to the bank debt following the merger of Pirelli with Marco Polo Industrial Holding Spa as well as the early repayment of the US bond loan Private Placement of XNUMX million dollars.
Il net cash flow from operations the result showed a marked improvement, going from -225,7 million in the first nine months of 2015 to -32,5 million euros in the first nine months of 2016, thanks to working capital management. Total investments amount to 238,4 million euros (261,8 million in the first nine months of 2015), mainly destined to increase Premium capacity in Europe, NAFTA and China, as well as improve the mix. The net flow of total cash flow - before dividends and the effects of the merger with Marco Polo Industrial Holding - was negative by 507,1 million euros, an improvement compared to -572,0 million euros in the first nine months of 2015.
La net financial position is a liability of 5.972,4 million euros, given that it includes the effects of the merger between Marco Polo Industrial Holding and Pirelli - which became effective on June 1, 2016 with retroactive accounting and tax effects to January 1, 2016. Excluding the effects of the merger, the net financial position at 31 December 2015 was equal to 1.199,1 million euros (5.331 million euros including the figure of Marco Polo Industrial Holding). The usual seasonal trend of working capital, with the collection of sales of the winter product in Europe and Russia in the fourth quarter coinciding with the sell-out activity in the markets in question leads - together with the finalization of some disposals of financial investments and real estate – to a natural improvement in the net financial position in the coming months. Also worth noting employment retention with the number of employees rising to 30 at 2016 September 36.763 from 36.753 at the end of December 2015.
