In light of the performance in the last quarter of 2013 and in the first months of 2014, Pirelli confirms the 2014 targets indicated last November in terms of:
- Ebit at 850 million euro after restructuring costs of 50 million euro
- investments below 400 million euro
- cash generation before dividends above 250 million euro
- net financial position negative at around 1.2 billion euro.
Consolidated sales are expected to be around 6.2 billion euro (compared with the previous target of around 6.6 billion euro) essentially because of a more cautious exchange rate scenario, expected at -9%/-10% compared with the prior target of -2%/-3%.
In organic terms, that is excluding exchange rate effects, growth is expected at >+9%/+10% compared with the previous estimate of >+8%/+9% in the following context:
- volumes above +5% (in line with previous targets) but with a greater contribution from Premium component (growth above +14% compared with prior target of about +12%). The volume growth estimates in Consumer and Industrial remain unchanged, respectively >+6 and between +4% and +4.5%);
- price/mix improving to +4%/+5% (previous targets +3%/+4%).
The target for the operating result (Ebit) excluding restructuring charges is confirmed at 850 million euro, as a consequence of:
- an improvement in the price/mix contribution to +4%/+5% (previously +3%/+4%), as already noted, with a positive impact on the operating result of about 15 million euro.
- lower raw material costs compared with previous estimates (-75 million euro compared with -120 million euro previously);
- already mentioned greater exchange rate volatility, with a total negative impact on the operating result of -110 million euro compared with the previous -50 million euro.