PIRELLI SCALES DOWN SALES TARGET OVER CURRENCY SWINGS
Pirelli, the world’s fifth-largest tyre maker, has cut its sales revenue target for 2014, citing worse-than-expected currency effects, after delivering 2013 results in line with its own previously-lowered forecasts. The Formula 1 tyre supplier said it expects to report sales of 6.2 billion euros ($8.52 billion) this year, up nearly one per cent on 2013 but down from a previous target of 6.6 billion euros.
The 2013 operating results of the Pirelli group show revenue growth and stable profitability, regardless of exchange rate volatility and the difficult macro-economic context, which affected Europe in particular. The positive performance of emerging markets more than offset the weakness of mature markets, with an increase in revenues of 4.3 per cent compared with a reduction of sales in Europe (-2.2 per cent) and in the Nafta area (-1.5 per cent).
A particularly positive performance was posted in South America (+5.2 per cent) and Apac (+14.5 per cent), while Russia remained substantially in line with the previous year and the Middle East Africa area saw a decline of 5 per cent compared with the prior year, impacted by elevated exchange rate volatilities.
Total volumes grew 5.7 per cent in 2013, thanks to the favourable performance of both business segments: +4.6 per cent in Consumer thanks to sales’ increases in emerging markets, where volumes grew by 9.7 per cent, and the good performance of Premium above all in Asia, South America and Nafta, while in Industrial volumes grew 8.7 per cent, centred mainly in South America.