March 02, 2011 10:17 ET

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

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

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

  • Revenues: EUR 1,075.3 million (+30.2% compared to 2009);
  • EBITDA: EUR 130.5 million (12.1% of sales; +29% compared to 2009);
  • EBIT: EUR 56.4 million (5.2% of sales; +149% compared to 2009);
  • Net profit: EUR 32.3 million (+206.5% compared to 2009);
  • Net financial debt: EUR 246.7 million, down EUR 26.9 million (-9.8%) compared to 30 September 2010 (EUR 255,0 million at 31 December 2010).
  • Proposal for the distribution of dividends of EUR 0.30 per share.

Highlights for the year ended 31 December 2010:

(EUR million)   31/12/2010   %
on sales
  31/12/2009   %
on sales
  D% 10/09
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:

(EUR million)   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 (MILAN: BRE) closed 2010 with consolidated net revenues of EUR 1,075.3 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 EUR 10.7 million compared to the previous year, when it also included several extraordinary items, including EUR 4.0 million in compensation paid to a supplier and a capital gain of EUR 3.9 million on the sale of 50% of BSCCB S.p.A. In 2010, the cost of sales and other operating costs amounted to EUR 731.7 million, with a ratio of 68.0% to revenues.

Personnel costs amounted to EUR 213.0 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 EUR 130.5 million (12.1% of revenues), compared to EUR 101.2 million of 2009.

Depreciation, amortisation and impairment losses amounted to EUR 74.1 million, down 5.6% compared to EUR 78.5 million for 2009.

EBIT amounted to EUR 56.4 million (5.2% of revenues), an increase from EUR 22.6 million for 2009.

Interest expenses were EUR 8.9 million during the year (EUR 10.6 million in 2009) and consisted of exchange gains of EUR 0.4 million (compared to exchange losses of EUR 1.5 million in 2009) and net interest expenses of EUR 9.3 million (EUR 9.1 million in the previous year).

Pretax profit amounted to EUR 45.4 million (EUR 10.7 million for 2009).

Estimated taxation, calculated based on the tax rates applicable for the year under current tax regulations, amounted to EUR 13.6 million (EUR 1.2 million in 2009), with a tax rate of 30.0% compared to 10.8% of 2009.

The period ended with a net profit of EUR 32.3 million, compared to EUR 10.5 million for the previous year.

Net debt as of 31 December 2010 amounted to EUR 246.7 million, down by EUR 8.3 million compared to the previous year (EUR 255.0 million) and by EUR 26.9 million compared to 30 September 2010 (EUR 273.6 million).

Q4 2010
Net consolidated revenues for Q4 2010 amounted to EUR 274.7 million, up by 29.8% compared to the same period of 2009.

EBITDA amounted to EUR 29.7 million (up 7.1% compared to 2009), with a ratio of 10.8% to revenues.

EBIT amounted to EUR 9.1 million (up 20.4% compared to 2009), with a ratio of 3.3% to revenues.

The period ended with a net profit of EUR 4.6 million.

Results of the Parent Company Brembo S.p.A.
Revenues of the Parent Company Brembo S.p.A. amounted to EUR 554.1 million for 2010, up 20.5% compared to the previous year.

Net profit was EUR 21.2 million, virtually unvaried compared to the previous year.

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

  • a gross dividend of EUR 0.30 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 EUR 0.52 and a maximum price of EUR 12.00 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.

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 in Dabrowa, Poland: start of production is expected by June 2011;
  • a new aluminium brake calliper manufacturing facility in Ostrava, Czech Republic: start of production is expected by June 2011;
  • the restructuring of the foundry in Nanjing, 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 in Pune, 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:

Contact Information

  • Investor Relator
    Matteo Tiraboschi
    Tel. +39 035 605 2899

    Media Relations:
    Monica Michelini
    +39 035 6052173

    Media Relation Consultant:
    COMMUNITY - Consulenza nella comunicazione
    Tel. +39 02 89404231

    Giorgio Maugini
    Mobile: +39 348 3219 990

    Marco Rubino
    Mobile: +39 335 6509 552

    Pasquo Cicchini
    Mobile: +39 345 1462429