Pirelli has unveiled first quarter 2013 consolidated net profit of EUR72.1m (US$94.6m), down 41.7% compared to EUR123.6m for the same period last year.
The result was impacted by an increase in financial charges of EUR58.6m says Pirelli, essentially due to an increase in debt, a negative impact of EUR8.3m from the devaluation of the Venezuelan currency and non-recurring inflows of EUR8.7m registered in the first quarter of 2012 and linked to the launch of Russian activities.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Total net cash flow improved, passing from negative EUR567.9m in the first quarter of 2012 to -EUR475m, of which around EUR50m relative to the impact on the net financial position of exchange rate variations, in particular with reference to Venezuela.
Consolidated revenues on 31 March, stood at EUR1.536bn, a decrease of 1.3% compared with EUR1.556bn in the first quarter of 2012.
The figure includes a negative impact of -4.9% linked to exchange rates, essentially because of the devaluation of South American, Japanese, UK and Egyptian currencies. Net of the exchange rate effect, overall revenues grew by 3.6%.
The operating result (EBIT) was EUR179.8m, with profitability at 11.7%, a decline compared with EUR212.7m in the first quarter of 2012 (13.7% of sales).
The decline was negatively affected by, among other things, an exchange rate impact of around EUR10m, greater industrial costs (around EUR10m) mainly due to the acceleration of the process of focusing the Settimo Torinese hub on Premium production and the start-up in Mexico.
There was also greater amortisation of EUR10.8m stemming from investment activity in prior years, as well as restructuring costs of EUR3.2m (EUR2m in the first quarter of 2012).
