Pirelli & C. S.p.A. reported earnings results for the first quarter ended March 31, 2018. For the quarter, the company reported, Adjusted Ebitda before start-up costs was EUR 298.0 million against EUR 281.7 million a year ago. Adjusted Ebitda was EUR 288.1 million against EUR 270.4 million a year ago. Adjusted Ebit before start-up costs was EUR 229.4 million against EUR 219.5 million a year ago. Adjusted Ebit was EUR 218.4 million against EUR 205.0 million a year ago. EBIT was EUR 184.0 million against EUR 168.7 million a year ago. Net income before tax was EUR 129.6 million against EUR 88.6 million a year ago. Net income related to continuing operations (Consumer) was EUR 92.4 million against EUR 49.5 million a year ago. Earnings per share related to continuing operations was EUR 0.09 against EUR 0.05 a year ago. Net income related to continuing operations (Consumer) adjusted was EUR 113.3 million against EUR 75.7 million a year ago. Net income attributable to the Parent Company was EUR 90.4 million against loss of EUR 27.9 million a year ago. Negative Operating net cash flow was EUR 726.0 million against EUR 720.1 million a year ago. Total Revenue was EUR 1,310.3 million against EUR 1,339.3 million a year ago. Net financial position was EUR 3,938.9 million against EUR 5,525.2 million a year ago. Total net income was EUR 89.1 million against loss of EUR 27.1 million a year ago. Investment in property, plant and equipment was EUR 85.3 million against EUR 98.3 million a year ago.

For 2018, the company expects Organic revenue growth of equal or above +9% (around +10% the prior indication) as a result of lower expected volume growth following the decision to accelerate the reduction of exposure to the Standard segment. On the other hand, the expected growth of High Value is confirmed. Including the forex effect, the lower volumes for the progressive reduction in the Standard segment, as well as the new IFRS 15 accounting principles (previously not included in the guidance), the total growth of revenues is expected at around +4% (prior indication above or equal to +6%). Growing weight of High Value component confirmed, which will represent equal to or above 60% of total sales at the end of 2018 (prior indication around 60%). Profitability forecast confirmed, with Adjusted Ebit before start-up costs expected at over EUR 1 billion. The effect of greater forex volatility and lower volumes is offset by lower impact of raw material costs (from negative EUR 95 million to about EUR 80 million). Weight of High Value segment on Adjusted Ebit before start-up costs confirmed at equal to or above 83%. Start-up costs confirmed declining to about EUR 40 million. Expected Adjusted Ebit confirmed at about EUR 1 billion. Ratio of net financial position and Adjusted Ebitda before start-up costs confirmed at around 2.3 times. CapEx confirmed at around 8% of revenues.