Milan, Italy – The Board of Directors of Pirelli & C. SpA reviewed and approved results for the six months ended 30 June 2015. The results of the first half of 2015, which show growth of the key economic indicators, were characterized in particular by: Further strengthening of the Premium segment, as evidenced by 10.4% volume growth, in line with 2015 guidance.
Premium registered a general increase in market share, particularly in Apac, Latam, Meai and Russia and reached a total weight of 59.4% of Consumer revenues, an improvement of over 3 %age points compared with the first half of 2014; Revenue growth of 6.4% (+3.2% at the organic level), in line with the full-year target, sustained by the positive performance of the Consumer business (+10.2%).
Revenues for the Industrial business (-5.8%) were impacted by the general market decline, in particularly in South America; The positive performance of the price/mix component (+3.5%), substantially in line with guidance foreseen for 2015 (about +4%). In the Consumer business, the price/mix component posted growth of +4.4% thanks to an increasing exposure high-end products and the Replacement channel and price increases in Russia and South America.
The improvement of the price/mix in the Industrial business (+0.7%) thanks to the positive figure of +1.3% in the second quarter of the year as a result of price increases in South America; The positive performance of Consumer volumes (+1.3% in the first half, +2.2% in the second quarter), which counter-balances the decline of the Industrial business (volumes down -5.7% in the first half, -4.7% in the second quarter) because of the weakness of the South American truck and agro markets.
Overall volumes were substantially stable at -0.3%. In the second quarter volumes increased +0.6%; The achievement of efficiencies of 45.8 million euro (51% of the full-year goal of 90 million euro) in the context of the 4-year efficiency plan (2014-2017) of 350 million euro announced in November of 2013 (efficiencies realized in 2014 totaled 92 million euro); The growth of the operating result (Ebit) by 4.8% to 446.6 million euro compared with the first half of 2014, with an Ebit margin of 14.1% (substantially in line with the 14.3% of first half 2014);- Net profit of continuing operations at 211.4 million euro (+10.0% compared with 192.1 million euro in first half 2014); Strong cash generation in the second quarter – before dividends’ payment and 35.6 million euro inflow linked to the sale of the steelcord business – 212.4 million euro, an improvement compared with 187.1 million euro in the second quarter of 2014; Net financial position is therefore 1,664.4 million euro (1,732.9 million euro on 31 March 2015).