Pirelli Q2 Profit Climbs, Lifts FY22 Revenue View; Stock Up

Shares of Pirelli & C. SpA (PPAMY.PK,PPAMF.PK) were gaining around 5 percent in the early morning trading in Italy after the tire manufacturer reported higher profit in its second quarter driven by strong revenue growth; The company also lifted its fiscal 2022 forecast for revenues.

For the second quarter, net profit climbed 37.8 percent to 123.2 million euros from 89.4 million euros in the prior year.

Adjusted Ebit was 253.1 million euros, up from 208.6 million euros in the second quarter 2021, Adjusted Ebit Margin was 15.1 percent, slightly down compared with 15.8 percent a year ago, due to the reduction of inventories and hyperinflation in Turkey.

Revenues grew 26.9 percent to 1.68 billion euros. Organic revenue growth was 19.8 percent excluding forex effect of +7.1 percent. Total volumes, meanwhile, edged down 0.6 percent with High Value volume up 5.7 percent and Standard volume down 7.9 percent.

Looking ahead for fiscal 2022, the company now expects revenues between around 6.2 billion euros and 6.3 billion euros, compared to previously expected around 5.9 billion euros to 6.0 billion euros.

Volumes are still expected to grow by between 0.5 percent and 1.5 percent driven by High Value. Adjusted Ebit Margin view is confirmed at around 15 percent.

In Italy, Pirelli shares were trading at 4.46 euros, up 4.89 percent.

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