Pirelli revenues, decline of 20% compared with March 2019

Pirelli revenues in Q1 2020, of 1,051.6 million euro, show a decline of 20% compared with 31 March 2019 because of sharp drop in demand.

Total net profit was 38.5 million euro (101.4 million euro in Q1 2019) and net cash flow: -753.5 million euro, substantially in line with -712.9 million euro in Q1 2019.

Covid-19 impact on Pirelli factories

In the first quarter of 2020, the tyre sector was significantly impacted by the Covid-19 emergency at the global level and by the related lockdown measures, with a general deterioration of economic conditions, fall in consumption and production.

In the first quarter, the demand for car tyres registered a fall of 20% in sales’ volumes, in both Original Equipment (-22.7% in line with car production) and Replacement (-19.3% because of restrictions on mobility).

The fall in demand struck the Standard segment in particular (-22% for Car tyres ≤17’’) and to a lesser degree New Premium (-11.6% for Car tyres ≥18’’), the more resilient segment.

During the quarter, production at Pirelli underwent significant discontinuities because of the suspension of activities in countries where this became progressively necessary both to protect workers’ health and because of the marked fall in demand.

The experience gained in China, where production and commercial activities are returning to normal, enabled Pirelli to respond quickly to the deep changes in the global scenario, defining an action plan and new 2020 targets.