(Alliance News) - The board of directors of Pirelli & C. Spa, which met on Wednesday, approved preliminary results as of Dec. 31, 2022, reporting numbers up and above the targets set in November 2022, which had already been revised upward during the year, the company specified in a note.

Revenues in 2022 were EUR6.62 billion, above the target of EUR6.5 billion and up 24 percent from 2021, when they were EUR5.33 billion.

Net income in 2022 was EUR435.9 million, up 36 percent from EUR321.6 million in 2021.

Adjusted Ebitda as of December 31, 2022 was EUR1.40 billion up from EUR1.21 billion in the year 2021.

Adjusted Ebit, on the other hand, in 2022 was EUR977.8 million up from EUR815.8 million in the previous year.

Net financial position as of December 31, 2022 was negative EUR2.55 billion from negative EUR3.39 billion as of September 30, 2022, and negative EUR2.91 billion as of December 31, 2021.

For 2023, the company explains in a note, forecasts are for a general slowdown in economic growth on which geopolitical tensions and persistent input inflation are weighing.

In such a scenario for the global car tire market "demand is expected to be substantially unchanged on an annual basis," Pirelli explains.

In light of the results achieved in 2022 and the projected macroeconomic scenario, the company expects revenues in the range of EUR6.6 billion to EUR6.8 billion for 2023 with volumes expected to be stable to up about 1 percent.

Adjusted Ebit Margin is expected to be between 14 percent and 14.5 percent.

Capital expenditures of about EUR400 million, about 6% of revenues, and a negative Net Financial Position of EUR2.35 billion are expected.

Net cash generation before dividends is expected to be between EUR440 and EUR470 million, due to operating performance and efficient working capital management. This target includes the payment of management's long-term incentives, covering the three-year period 2020-2022.

The board also co-opted Wang Feng to replace Bai Xinping, who resigned effective today.

The board also proceeded to appoint Wang Feng-qualified by the board as a nonexecutive director as a member of the Compensation Committee, the Nomination and Succession Committee, and the Strategy Committee.

The new director, who will hold office until the next shareholders' meeting, does not meet the independence requirements of the regulations and the Corporate Governance Code and as of today does not hold shares and/or other financial instruments issued by Pirelli, the company added.

Pirelli on Wednesday closed 0.4 percent in the red at EUR4.81 per share.

By Chiara Bruschi, Alliance News reporter

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