Pirelli revenues lower, net income halved in Q1 2016

Despite organic growth of 5.1 per cent, revenues at Pirelli & C. S.p.A decreased 8.4 per cent year-on-year to €1.4 billion in the first three months of this year. Excluding the company’s Pirelli de Venezuela operation, which was deconsolidated at the end of 2015, revenues were down 4.2 per cent. This decline was driven by a 15.3 per cent year-on-year (this and the following figures, excluding net income, reflect Pirelli’s Q1 2015 performance minus its Venezuela business) drop in revenues within Pirelli’s Industrial business, which achieved revenues of €269.4 million in the opening quarter of 2016. Revenues within the company’s Consumer business amounted to €1.2 billion, 1.0 per cent less than the company recorded a year earlier.

The Q1 2016 EBIT of €200.2 million was 1.7 per cent less than that of a year ago, while the EBIT margin grew 0.3 p.p. to 13.9 per cent. First quarter net income was €40.4 million, less than half that of a year earlier. The tyre maker says this result takes into account a €30.6 million increase in net financial charges.

Tyre business revenues declined 4.0 per cent year-on-year to €1.4 billion and are comprised of Consumer business revenues of €1.2 billion and Industrial revenues of €269.4 million. EBIT decreased 2.9 per cent to €200.7 million, while the EBIT margin crept up 0.2 p.p. to 14.0 per cent.

Further details of Pirelli’s Q1 2016 and previous financial results are available in the Tyrepress.com company profiles and reports section.