Milan – Pirelli has “deconsolidated” its operations in Venezuela due to a “deterioration of the macro-economic context, growing restrictions on the conversion of foreign currencies and the reduced availability of US dollars”.
“In line with other multi-nationals, Pirelli therefore proceeded – with reference date 31 Dec 2015 – to the accounting deconsolidation of Pirelli de Venezuela CA, the value of the stake being booked at fair value (equal to €18.9 million),” the Italian tire-maker announced 15 March.
The announcement accompanied Pirelli’s full-year 2015 results: showing that the deconsolidation had a €560 million negative impact on its accounts.
Of that amount, said the company, €278 million related to the Venezuelan company’s positive net financial position.
Pirelli said that the Venezuelan operation would no longer be included in its results, “and therefore will no longer bear the impact of the recurring devaluations which we have seen in recent years, both at the level of results and the net financial position.”