1.1MB - Pirelli

Pirelli S.p.A.
Condensed financial statements
(in billions of lire) 1998) 1997)
BALANCE SHEET
• Intangible assets 21.7) 14.6)
• Property, plant and equipment 60.5) 61.9)
• Investments 3,695.5) 3,118.5)
• Net working capital 295.2) 330.6)
4,072.9) 3,525.6)
• Shareholders’ equity 4,054.5) 3,393.8)
• Provisions 90.9) 100.0)
• Net financial position (72.5) 31.8)
4,072.9) 3,525.6)
STATEMENT OF INCOME
• Financial income and expenses 492.0) 413.1)
• Value adjustment to financial assets (10.2) (7.8)
• Other operating expenses (10.9) (30.2)
Income before extraordinary items and income taxes 470.9) 375.1)
• Extraordinary items, net (6.8) (33.1)
• Income taxes (73.2) (57.5)
Net income for the year 390.9) 284.5)
Financial position
The financial position of the company shows the following changes between December 31,
1997 and December 31, 1998:
• net invested capital rose compared to the prior year mainly due to the increase in the
investment in Pirelli Finance (Luxembourg) S.A., purchased from Pirelli & C. A.p.A..
As per the shareholders’ resolution of May 12, 1997 and in observance of the procedures
established therein, during the year, 53,495,000 ordinary treasury shares were
purchased on the market for Lire 269.4 billion. On December 31, 1998, a total of
58,872,500 ordinary shares, equal to 2.969 percent of share capital, were purchased for
Lire 292.6 billion at a weighted average price of Lire 4,969.3 per share.
• shareholders’ equity increased by the net income for the year (Lire 390.9 billion) and
by the conversion, before the redemption date, of the remaining 5% 1994-1998
convertible debentures (Lire 505.5 billion).
These movements had a consequent effect on the net financial position, which went from
a debt position of Lire 31.8 billion at December 31, 1997 to a liquidity position of
Lire 72.5 billion at December 31, 1998.
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