(Alliance News) - Pirelli & C. Spa reported Thursday that it closed the first nine months with revenues of EUR5.18 billion, up just 0.5 percent year-on-year.

In the third quarter alone, the company posted revenues of EUR1.74 billion from EUR1.72 billion in the same period a year earlier.

Volumes rose 2.2 percent in the nine months and 3.0 percent in the third quarter, in both cases supported by strong growth in High Value. Price/mix increased 2.7 percent in the nine months and 2.5 percent in the quarter, driven by improved product mix.

Adjusted operating income increased to EUR815.9 million in the nine months or 4.3 percent while, in the third quarter alone, the figure shows an increase of 4.4 percent to EUR276.8 million.

Net income was EUR371.1 million in the nine months from EUR411.0 million and EUR139.8 million in the quarter from EUR168.4 million, impacted by hyperinflation.

Net cash flow before dividends was negative EUR356.8 million as of Sept. 30 but improved from minus EUR367.7 million in the first nine months of 2023. Net financial position is negative EUR2.82 billion from EUR2.98 billion as of June 30 this year and EUR2.26 billion as of December 31, 2023.

In light of the results achieved in the first nine months and the expected scenario, Pirelli confirms all targets communicated in August. Forecasts for 2024 estimate expected revenues at around EUR6.7 billion, with volumes up 2 percent and price/mix improving 2.5 percent thanks to continued improvement in product mix.

Foreign exchange impact is expected to be negatively between 4 percent and 3.5 percent while adjusted Ebit margin is confirmed at about 15.5 percent.

Net cash generation before dividends is confirmed between EUR500 million and EUR520 million due to operating performance and working capital management. Capital expenditures remain confirmed at around EUR400 million and equal to 6 percent of revenues. The estimated Net Financial Position, negative EUR1.95 billion, also does not change, with the NFP/adjusted EBITDA ratio confirmed between 1.32 and 1.26 times.

Pirelli's stock closed Thursday up 0.9 percent to EUR4.97 per share.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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