Pirelli closed the second quarter with decidedly positive results, supported by the general recovery in demand, with a revenue growth of +72,6% it's a net profit for the six-month period of 131,6 million euro.
In particular, in the second quarter of 2021 the overall volumes of Pirelli grew by 69,9% compared to the same period of 2020. The contribution of the price/mix was strong (+3,0% in the first six months of 2021, +4,0 % in the second quarter), which reflects the improvement of the product mix (particularly in the High Value segment), and the implementation of the price increases starting from the end of the first quarter.
The impact of exchange rates was negative (which also takes into account hyperinflation in Argentina: -4,1% in the half year, -1,3% in the second quarter) influenced by the appreciation of the euro against the dollar and the main currencies of emerging markets (particularly South America and Russia).
Adjusted Ebit – reads a note – in the first half of 2021 amounted to 377,4 million euros (66,7 million in the first half of 2020), with a Adjusted Ebit equal to 14,7% an improvement compared to 3,7% in the first half of 2020 thanks to the contribution of internal levers (volumes, price/mix, efficiencies) which more than offset the negative external scenario (raw materials, inflation, exchange rate impact).
Forecasts for the rest of the year are more than positive. Confirmed the forecast of 10% growth in 2021, but with a different trend than previous expectations for the various segments and channels. In particular, the Car ≥18″ market is now expected to grow by 15% (+2 percentage points compared to the previous target), driven by the Replacement channel (+18% compared to the +12% initially forecast), while in Original Equipment the shortage of semiconductors leads to greater caution in demand forecasts (+10% expected growth, less than 5 percentage points compared to initial forecasts).
In the light of the market scenario and the results achieved, the tire group reviews al I raise the 2021 targets. Revenues between 5 and 5,1 billion euros with volumes growing between +14% and +15%; the price/mix improving between +4,5% and 5% thanks to price increases and a more favorable channel and product mix; exchange rate impact improving to -2,5% / -2%; Adjusted Ebit Margin between approximately 15% and approximately 15,5% thanks to the greater contribution of volumes and price/mix. The latter will offset the increase in the cost of raw materials (linked to oil and derivative products) and the impact of exchange rates; investments confirmed at around 330 million euro. And finally an expected improvement in the net financial position.
