Pirelli's Financial Results Are Positive Through 3 Quarters
Pirelli & Cie SpA posted net income of 123.6 million euros on revenues of 4 billion euros through the first nine months of fiscal 2017 ended Sept. 30. That compares to income of 16.7 million euros on sales of 3.7 billion euros for the same period last year.
Based on the exchange rate on Sept. 30, 2017, Pirelli recorded net income of $104.6 million on net sales of $3.4 billion for the first nine months of fiscal 2017. Its income-to-sales ratio was 3%.
The nearly 9% increase in revenue year-over-year reflected the company's focus on the high value segment. The increase benefitted from a 6.5% increase in price/mix; in the third quarter alone, Pirelli's price/mix was up 7.3%.
"The results for the first nine months are in line with the strategy defined in the 2017-2020 industrial plan," said the company. In particular, they reflect:
* the reinforcement of Pirelli at the high end with the progressive reduction of its exposure to the standard segment;
* the consequent improvement of the price/mix component;
* the further reinforcement of partnerships with 'prestige' and 'premium' car makers;
* the increasing "high value" production capacity;
* the increasing of distribution coverage in Europe, NAFTA, Apac (Asia-Pacific) and Latin America; and
* "the ongoing development of business programs that intercept the new needs of the end customer, such as Cyber and Velo."
Pirelli's full-year outlook is positive: a 9% increase in revenues, "with the weight of high value above 57%" (it was 55% at the end of 2016).