SOURCE: BREMBO

February 13, 2007 15:16 ET

BREMBO: The Board of Directors of Brembo approves the fourth quarter financial results

CURNO, ITALY -- (MARKET WIRE) -- February 13, 2007 --


The Board of Directors of Brembo approves the fourth quarter financial results.

FY 2006 preliminary results:

- Sales +13,3%

- EBITDA +6,5%

- Net profit +4,0%

Fourth quarter:

- Sales +19,8%

- EBITDA -2,4% due to some negative non-recurring elements

- Net profit +14,7%

FY 2006 preliminary results

+----------------+--------+--------+----------+
|   EUR  MLN     |31.12.06|31.12.05|Var% 06/05|
+----------------+--------+--------+----------+
|Sales           |   806.1|   711.6|    +13.3%|
+----------------+--------+--------+----------+
|EBITDA          |   119.0|   111.8|     +6.5%|
+----------------+--------+--------+----------+
|EBIT            |    79.7|    73.4|     +8.7%|
+----------------+--------+--------+----------+
|Pre-tax profit  |    70.6|    66.7|     +5.7%|
+----------------+--------+--------+----------+
|Net Profit      |    42.1|    40.5|     +4.0%|
+----------------+--------+--------+----------+
|Net indebtedness|   190.9|   193.1|     -1.1%|
+----------------+--------+--------+----------+
+----------------+--------+--------+----------+
Q4 2006
+--------------+-------+-------+---------+
|   EUR  MLN   |Q4 2006|Q4 2005|Var%06/05|
+--------------+-------+-------+---------+
|Sales         |  207.1|  172.9|   +19.8%|
+--------------+-------+-------+---------+
|EBITDA        |   29.3|   30.1|    -2.4%|
+--------------+-------+-------+---------+
|EBIT          |   18.2|   19.6|   -7,20%|
+--------------+-------+-------+---------+
|Pre-tax profit|   19.3|   17.5|   +10.6%|
+--------------+-------+-------+---------+
|Net Profit    |   12.3|   10.7|   +14.7%|
+--------------+-------+-------+---------+
+--------------+-------+-------+---------+
DATA EXPRESSED ACCORDING TO IAS/IFRS.

The results of the quarter

Sales in the quarter amount to EUR 207.1 million, up 19.8% over the same quarter last year.

The higher than forecasted sales growth, is totally due to applications for original equipment passenger car and for commercial vehicles.

The passenger car segment performed very well with a 25.2% increase; original equipment sales, in particular to German customers, increased faster than after market sales. Good performance of commercial vehicles (+28.8% in the quarter) thanks to the continuing positive cycle of road transportation and to the progressive ramp up of DaimlerChrysler platform.

The motorcycle segment recorded a 4.1% turnover increase; the racing segment was flat but has to be compared with a particularly positive fourth quarter 2005.

From a geographic point of view, very good growth in the German (+40.2%) and English market (+23.9%) due to the positive evolution original equipment sales. Good performance also of the domestic market (+13.5%) and of the other UE countries, excepting the French market (-13.6%).

Brazil keeps on growing (+18.2%), while Asia records the highest relative increase (+66%) thanks to car applications supplied to Japanese customers and to the start up of production in China. Nafta revenues were weak during the quarter.

In the quarter, the cost of sales and other operative costs amount to EUR 137,2 million, with an incidence of 66.2% on sales, compared to 61.9% of the same period of the previous year. The greater incidence is due to several factors: a negative sales mix, in comparison with the same period of 2005; a period of tuning of the polish foundry production, now completed; some residual non recurring costs connected to the closing of plants in Italy and the Chinese plant start-up costs. During the quarter the sale of an industrial building in Italy generated a capital gain of EUR 2.9 million.

The personnel expenses amount to EUR 40.6 million, +13.3% compared to the previous year, with an incidence on revenues that decreases from 20.7% to 19.6%.

EBITDA is down 2.4% and goes from EUR 30.1 million (17.4% of revenues) to EUR 29.3 million (14.2% of revenues), as a result of the above mentioned factors.

Depreciation and amortization in the quarter on approval amount to EUR 11.1 million, up 6.6% over 2005 fourth quarter. These are related to both new investments made in the quarter and to capitalized development costs.

EBIT amounts to EUR 18.2 million, or 8.8% of sales, compared to EUR 19.6 million (11.4% of sales) in the same quarter of the previous year.

Net financial charges are positive for EUR 0.9 million (2005 fourth quarter: negative for EUR 2.0 million). Interests on indebtedness amount to EUR 2.5 million, up compared to 2005 fourth quarter (EUR 2.2 million) due to the higher level of net indebtedness and to the increasing interest rates. The settlement of a derivative instrument held for trading generated a capital gain of EUR 2.1 million and net exchange rate differences have been positive for EUR 1.5 million.

Estimated taxes for the quarter amounts to EUR 6.8 million, or 35.0% of income before taxes (35.7% in 2005 fourth quarter). The fourth quarter investments amount to EUR 25.8 million, mainly to gear up installed capacity in Italy in order to match the increasing demand.

Net financial indebtedness lowers from EUR 238.8 million at 30.09.2006 to EUR 190.9 million at 31.12.2006, in spite of the high level of investments of the quarter, also thanks to the sale of an industrial building, and the recharge to Pioneer Investment Management of all costs sustained for the construction of the new Technological Site in Stezzano.

FY 2006 preliminary results

Preliminary full year 2006 results show an increase in sales of 13.3% to EUR 806.1 million.

EBITDA amounts to EUR 119.0 million, or 14.8% of sales, with an increase of 6.5%. After deducting amortization and depreciation for EUR 39.3 million, up 2.3%, EBIT is EUR 79.7 million, or 9.9% of sales. Net profit is EUR 42.1 million, +4.0% compared to previous year.

Significant Events After the Close of the Quarter

No significant events occurred after the closing of the 2006 fourth quarter.

Foreseeable evolution

In 2007 the positive development of activity should continue in terms of both revenues and results.

Please see attached schemes for further details on quarterly and preliminary 2006 full-year results.


This information is provided by CompanynewsGroup

Contact Information

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