Milan,
10
March
2021
|
17:48
Europe/Amsterdam
BOARD OF DIRECTORS OF PIRELLI & C SPA REVIEWED PRELIMINARY RESULTS FOR YEAR ENDED 31 DECEMBER 2020
corporate-investors

PIRELLI: 2020 RESULTS IN LINE WITH TARGETS,

EFFICIENCY PLAN AND COSTS' REDUCTION ATTENUATE COVID IMPACT

PROFIT OF 42.7 MILLION EURO FOR YEAR, COVID EFFECT NOTWITHSTANDING

2020 NET CASH FLOW BEFORE DIVIDENDS 248.8 MILLION EURO (207.6 EXCLUDING EFFECT OF CONVERTIBLE BOND)

FOURTH QUARTER CAR≥18' VOLUMES INCREASED 12.6%, MORE THAN DOUBLE MARKET RATE. ADJUSTED EBIT MARGIN GREW 18.3%

Fourth quarter 2020

  • Revenues: 1,208.3 million euro, with an organic variation of +1.7% compared with 4Q 2019

(-6.1% including forex effect)

  • Adjusted Ebit: 220.8 million euro (232.3 million in 4Q 2019), Adjusted Ebit margin at 18.3% an improvement from 18.1% in 4Q 2019
  • Net result: +60.5 million euro (+72 million in 4Q 2019)
  • Cash flow before dividends positive 994.1 million euro (+973 million in 4Q 2019)

Full year 2020

  • Revenues: 4,302.1 million euro, with an organic variation of -14.1% (-19.2% including forex effect) because of the fall in demand, particularly in the first half
  • Adjusted ebit: 501.2 million euro (917.3 million euro adjusted Ebit in 2019): efficiencies and cost containment actions limited the impact of the external context
  • Net result: +42.7 million euro (+457.7 million euro in 2019)
  • Net cash flow before dividends: +248.8 million euro (+344.1 million euro in 2019), +207.6 million excluding positive impact of convertible bond
  • Net Financial Position:-3,258.4 million euro, an improvement compared with -3,507.2 million euro on 31 December 2019
  • Liquidity Margin: 3,034.4 million euro, financial debt maturities guaranteed until June 2024 in case of extension of bank debt maturing in June 2022
  • Research & Development spend: 194.6 million euro in 2020 (4.5% of sales), of which 182.5 million euro destined to High Value activities (6.0% of segment revenues)
  • Leadership confirmed in the main sustainability indices at the global level
  • Targets for CO2emissions' reduction validated by the Science Based Targets Initiative (SBTi)
  • Over 50% of electric energy used by the group comes from renewable sources

***

2021 TARGETS

  • 2021 outlook improving: the global car tyre market expected to grow by 'high single digit' levels. 'Double digit' growth seen for Car≥18'' market which in 2021 will return to 2019 levels
  • Pirelli aims to strengthen leadership in Car≥18'' and, in general, in High Value
  • Revenues expected at around 4.7 - 4.8 billion euro (around 4.3 billion in 2020)
  • Adjusted Ebit Margin expected between>14% and around 15% (11.6% in 2020)
  • Net cash flow before dividends about 300-340 million euro (207.6 million in 2020 excluding the impact of the convertible bond) after investments equal to about 7% of sales
Published on: 10 March 2021, 17:48 CET

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Pirelli & C. S.p.A. published this content on 10 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 March 2021 16:55:04 UTC.