Pininfarina estimates a return to profit this year, thanks to the lower financial charges from a debt restructuring and the improvement of its engineering and design business. This will be the Italian automotive design company's first profit since 2004. Chairman Paolo Pininfarina explained that the debt restructuring of the company allowed it to "say for the first time in five years" that their "survival is no longer at risk."
Paolo Pininfarina is the grandson of Battista Farina, who is the founder of the family-controlled group. Pininfarina has designed vehicles for Maserati, Ferrari, Cadillac and Rolls-Royce, among other companies. It closed its manufacturing operations to concentrate exclusively on design after a rise in capital in 2009.
A 182.6 million-debt restructuring inked in April extended the repayment plan of the company to 2018 from 2015. In a statement, Pininfarina disclosed that it anticipated making an operating loss this year, but will earn a net profit due to the benefit it can get from a one-time gain of about 45 million euros. The first-quarter loss of Pininfarina improved to 3.1 million euros from a previous loss of 6.5 million euros in the same period a year before.
Revenue increased from 13.4 million euros to 15.7 million euros. Earlier in May, CEO Silvio Pietro Angori stated that China will surpass Germany as the company's largest market in 2012. Germany and China each contribute around 35% of the company's revenue. In addition, Italy contributes around 20% and other markets generate the rest, Angori disclosed.