Q3 2024 Pirelli & C SpA Earnings Call Transcript
Key Points
- Pirelli & C SpA (PLLIF) reported solid volume growth and improved profitability, achieving the highest profitability among tier one players.
- The company successfully reduced its debt and generated positive cash flow in the third quarter due to efficient working capital management.
- Pirelli & C SpA (PLLIF) confirmed its 2024 targets, supported by its strong positioning in the high-value market segment and resilient business model.
- The company is advancing in connectivity and sustainability, with a partnership with Bosch to integrate tire sensors into car control systems.
- Pirelli & C SpA (PLLIF) achieved significant efficiencies, offsetting inflation impacts and progressing on its decarbonization journey with validated targets by the Science Based Targets initiative.
- The company faces an uncertain environment with geopolitical tensions, slowing demand from carmakers, and raw material volatility.
- Pirelli & C SpA (PLLIF) reported a negative net financial position of EUR 2.82 billion, despite improvements compared to the previous year.
- The replacement market in China showed weakness, and the company does not expect a recovery in the last quarter of the year.
- The company anticipates a negative impact from raw material costs in the fourth quarter, which could affect profitability.
- Pirelli & C SpA (PLLIF) is exposed to potential risks from geopolitical developments, such as the Golden Power investigation concerning its Chinese stakeholder.
Ladies and gentlemen, welcome to Pirelli's conference call in which Pirelli top management will present the company's nine month, 2024 financial results, a live webcast of the event and the presentation slides are available in the investor relations section of the P RLI website. I remind you that the Q&A session will follow after the presentation. Now, I would like to introduce Mr Marco Tronchetti. Provera. Please go ahead, sir.
Thank you and good evening. Ladies and gentlemen, the results of the first nine months confirm the effectiveness of our strategy.
We strengthen our high value presence. Thanks to the solid volume growth, the effectiveness of the internal levels price mix and efficiencies led to an improvement in profitability, the highest among tier one players. Finally, we reduced our debt and recorded positive cash generation in the third quarter as a result of efficient working capital management.
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