SOURCE: BREMBO

March 02, 2011 09:04 ET

Brembo's Board of Directors Approved the Draft Annual Financial Statements for 2010

STEZZANO, ITALY--(Marketwire - March 2, 2011) -


PRESS RELEASE

For immediate release

Brembo's Board of Directors Approved the Draft Annual Financial Statements for 2010. · Revenues: EUR1,075.3 million (+30.2% compared to 2009);

· EBITDA: EUR130.5 million (12.1% of sales; +29% compared to 2009);

· EBIT: EUR56.4 million (5.2% of sales; +149% compared to 2009);

· Net profit: EUR32.3 million (+206.5% compared to 2009);

· Net financial debt: EUR246.7 million, down EUR26.9 million (-9.8%) compared to 30 September 2010 (EUR255,0 million at 31 December 2010).

· Proposal for the distribution of dividends of EUR0.30 per share.

Highlights for the year ended 31 December 2010:

+---------------+------------+----------+------------+----------+---------+
|(EURmillion)   | 31/12/2010 |    %     | 31/12/2009 |    %     |D% 10/09 |
|               |            | on sales |            | on sales |         |
+---------------+------------+----------+------------+----------+---------+
| Revenues      | 1,075.3    |          |     825.9  |          |30.2%    |
+---------------+------------+----------+------------+----------+---------+
| EBITDA        |     130.5  |  12.1%   |     101.2  |  12.3%   |29.0%    |
+---------------+------------+----------+------------+----------+---------+
| EBIT          |       56.4 |   5.2%   |       22.6 |   2.7%   |149.0%   |
+---------------+------------+----------+------------+----------+---------+
| Pretax profit |       45.4 |   4.2%   |       10.7 |   1.3%   |325.5%   |
+---------------+------------+----------+------------+----------+---------+
| Net profit    |       32.3 |   3.0%   |       10.5 |   1.3%   |206.5%   |
+---------------+------------+----------+------------+----------+---------+

+--------------------+-------------+---+-------------+---+---+
|                    | 31/12/2010  |   | 30/09/2009  |   |   |
+--------------------+-------------+---+-------------+---+---+
| Net financial debt |       246.7 |   |       273.6 |   |   |
+--------------------+-------------+---+-------------+---+---+


Highlights for the fourth quarter of 2010:

+---------------+------------------+------------------+-------------+
| (EURmillion)  |     Q4 2010      |     Q4 2009      | D% 10/09    |
|               |                  |                  |             |
+---------------+------------------+------------------+-------------+
| Revenues      |         274.7    |         211.6    |    + 29.8%  |
+---------------+------------------+------------------+-------------+
| EBITDA()      |            29.7  |            27.7  |       +7.1% |
+---------------+------------------+------------------+-------------+
| EBIT()        |              9.1 |              7.6 |     +20.4%  |
+---------------+------------------+------------------+-------------+
| Pretax profit |              6.0 |              5.3 |     +13.0%  |
+---------------+------------------+------------------+-------------+
| Net profit    |              4.6 |              7.6 |      -38.7% |
+---------------+------------------+------------------+-------------+

* *** *

Group's Consolidated 2010 Results

The Brembo Group closed 2010 with consolidated net revenues of EUR1,075.3 million, above pre-crisis levels and up by 30.2% compared to the end of 2009.

On a like-for-like consolidation area (i.e., excluding the effect of the Chinese firm Brembo Nanjing Foundry, acquired in 2010), net revenues increased by 28.4%.

Commercial vehicle applications, which increased by 38.3%, and car applications, which increased by 35.0%, contributed significantly to the Group's growth. The motorbike segment also performed well, reporting a 14.1% increase. In addition, the passive safety segment grew by 5.5% and the racing segment by 2.0%.

At geographical level, Europe continued to show growth, with Germany remaining the Group's number-one market (accounting for 22.0% of total revenues), including in growth terms (+42.0%), the United Kingdom growing by 31.5%, France by 28.4% and Italy by 16.4%. China and India continued their unrelenting rise, gaining 119.3% and 54.2%, respectively. Revenues from NAFTA countries (up by 27.1%) and Brazil (up by 25.6%) were also strong.

The item "Other revenues and income" decreased by EUR10.7 million compared to the previous year, when it also included several extraordinary items, including EUR4.0 million in compensation paid to a supplier and a capital gain of EUR3.9 million on the sale of 50% of BSCCB S.p.A. In 2010, the cost of sales and other operating costs amounted to EUR731.7 million, with a ratio of 68.0% to revenues.

Personnel costs amounted to EUR213.0 million in 2010, with a ratio of 19.8% to revenues, down from 22.4% in the previous year, when this item also included extraordinary expenses associated with the reorganisation of the Group.

The workforce was 5,904 at 31 December 2010, up by 9.0% from 5,417 in the previous year. On a like-for-like consolidation basis, Group personnel increased by 1.9% compared to 31 December 2009.

EBITDA for the year totalled EUR130.5 million (12.1% of revenues), compared to EUR101.2 million of 2009.

Depreciation, amortisation and impairment losses amounted to EUR74.1 million, down 5.6% compared to EUR78.5 million for 2009.

EBIT amounted to EUR56.4 million (5.2% of revenues), an increase from EUR22.6 million for 2009.

Interest expenses were EUR8.9 million during the year (EUR10.6 million in 2009) and consisted of exchange gains of EUR0.4 million (compared to exchange losses of EUR1.5 million in 2009) and net interest expenses of EUR9.3 million (EUR9.1 million in the previous year).

Pretax profit amounted to EUR45.4 million (EUR10.7 million for 2009).

Estimated taxation, calculated based on the tax rates applicable for the year under current tax regulations, amounted to EUR13.6 million (EUR1.2 million in 2009), with a tax rate of 30.0% compared to 10.8% of 2009.

The period ended with anet profit of EUR32.3 million, compared to EUR10.5 million for the previous year.

Net debt as of 31 December 2010 amounted to EUR246.7 million, down by EUR8.3 million compared to the previous year (EUR255.0 million) and by EUR26.9 million compared to 30 September 2010 (EUR273.6 million).

Q4 2010

Net consolidated revenues for Q4 2010 amounted to EUR274.7 million, up by 29.8% compared to the same period of 2009.

EBITDA amounted to EUR29.7 million (up 7.1% compared to 2009), with a ratio of 10.8% to revenues.

EBIT amounted to EUR9.1 million (up 20.4% compared to 2009), with a ratio of 3.3% to revenues.

The period ended with a net profit of EUR4.6 million.

Results of the Parent Company Brembo S.p.A.

Revenues of the Parent Company Brembo S.p.A. amounted to EUR554.1 million for 2010, up 20.5% compared to the previous year.

Net profit was EUR21.2 million, virtually unvaried compared to the previous year.

The Shareholders' Meeting will propose the following distribution of profit:

· a gross dividend of EUR0.30 per ordinary share outstanding at ex-coupon date, consequently excluding own shares;

· the remaining amount to reserves.

It will also be proposed that dividends should be paid as of 12 May 2011, ex-coupon No.19 on 9 May 2011.

Call for Shareholders' Meeting

The General Shareholders' Meeting is convened (first call) on 29 April 2011 at 11.00 a.m. at the Company offices in Stezzano (BG) (second call on 30 April, same time and place).

The agenda for the ordinary meeting is, among other, as follows:

· approval of the Financial Statements of the Parent Company for the year ended 31 December 2010;

· approval of the own shares buy-back plan;

· appointment of the Board of Directors and Statutory Auditors

· change of the audit fees of the company PricewaterhouseCoopers S.p.A.

Plan for the buy-back and disposal of own shares

Today's meeting of the Board of Directors resolved to submit a plan to buy and dispose of own shares to the forthcoming shareholders' meeting in order:

· to undertake investments, also with the aim of supporting the liquidity of Company's stock, so as to foster the regular conduct of trading beyond normal fluctuations related to market performance;

· to give effect to any share-based incentive plans for the directors, employees and collaborators of the company and/or its subsidiaries; and

· to pursue any swap transactions with equity investments as part of strategic projects.

Under the plan, the Board of Directors would be allowed to buy and/or dispose of, on one or more tranches, a maximum of 2,680,000 ordinary shares for a minimum price of EUR0.52 and a maximum price of EUR12.00 each.

Own shares shall be purchased on regulated markets, on one or more tranches, and according to operating conditions such as to ensure equal treatment of Shareholders and not to allow the direct pairing of purchase bids with predetermined sales bids.

Authorisation is requested for a period of 18 months from the date of the resolution of the Shareholders' Meeting that grants said authorisation.

At present, the Company holds 1,440,000 own shares representing 2.156% of share capital.

Significant Events After Year-End

As part of the corporate reorganisation activities as described in previous releases, the mergers between Brembo S.p.A. and Marchesini S.p.A., Brembo S.p.A. and Brembo Performance S.p.A., Brembo Performance Japan Co. Ltd. and Brembo Japan Co. Ltd., and Brembo Performance North America Inc. and Brembo North America Inc. became effective in January 2011.

Outlook

Sales have continued to trend upwards in 2011, which will lead to the saturation of newly constructed plants sooner than initially expected.

In further detail, the announced investments call for:

- the doubling of the capacity of the current foundry and processing facility inDabrowa, Poland: start of production is expected by June 2011;

- a new aluminium brake calliper manufacturing facility inOstrava, Czech Republic: start of production is expected by June 2011;

- the restructuring of the foundry inNanjing, China acquired in January 2010: work is expected to be concluded in late 2011; and

- the doubling of the capacity of the current motorbike braking systems manufacturing facility located inPune, India: work is expected to be concluded in May 2011.

The manager in charge of the Company's financial reports, Matteo Tiraboschi, declares, pursuant to paragraph 2 of Article 154-bis of Italy's Consolidated Law on Finance, that the accounting information contained in this press release corresponds to the documented results, books and accounting records.

Annexed hereto are the Income Statement, Balance Sheet and Cash Flow Statement for which the auditing process by the independent auditors is currently ongoing.


Press Release: http://hugin.info/144497/R/1493844/429564.pdf

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Source: BREMBO via Thomson Reuters ONE

[HUG#1493844]

Contact Information

  • Investor Relator
    Matteo Tiraboschi
    Tel. +39 035 605 2899
    Email: Email Contact
    www.brembo.com

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