SOURCE: BREMBO

May 12, 2011 07:02 ET

Press Release: Results for the First Quarter of 2011

CURNO (BG), ITALY--(Marketwire - May 12, 2011) -



Brembo's Board of Directors approved the results for the first quarter of 2011: revenues and net profit grew sharply.

  * Revenues: EUR312.2 million (+27.9% compared to Q1 2010);
  * EBITDA: EUR38.5 million (+24.2%);
  * EBIT: EUR19.7 million (+43.3%);
  * Net profit: EUR11.2 million (+68.6%):
  * Net financial position down EUR6.1 million.

Highlights for the first quarter of 2011:
+--------------------+---------------+----------------+---------------+
| (EURmillion)       |    Q1 2011    |    Q1 2010     |   D% 11/10    |
+--------------------+---------------+----------------+---------------+
| Revenues           |        312.2  |        244.0   |    +27.9%     |
+--------------------+---------------+----------------+---------------+
| EBITDA             |          38.5 |          31.0  |    +24.2%     |
+--------------------+---------------+----------------+---------------+
| EBIT               |          19.7 |          13.8  |    +43.3%     |
+--------------------+---------------+----------------+---------------+
| Pretax profit      |          16.9 |            9.7 |    +75.5%     |
+--------------------+---------------+----------------+---------------+
| Net profit         |          11.2 |            6.7 |    +68.6%     |
+--------------------+---------------+----------------+---------------+
| Net financial debt |         263.7 |         269.8  |     -2.2%     |
+--------------------+---------------+----------------+---------------+

Group Activities in the First Quarter of 2011

Brembo's Board of Directors chaired by Alberto Bombassei met today and approved the Group's results for the quarter ended 31 March 2011.

Brembo Group's revenues for the first quarter of 2011 continued to grow sharply to EUR 312.2 million, up 27.9%.

All the Group's segments of operation contributed to the growth: car applications rose by 30.2%, motorbikes by 22.0% and commercial vehicles by 15.8%. The racing and passive safety segments marked a sharp contrast to the previous months increasing by 38.0% and 52.4%, respectively.

At geographical level, growth is also evenly distributed, both in the Group's traditional and new markets. Germany, which continues to be Brembo's main target market, increased 34.8%, Italy 21.8%, the UK 27.6% and France 55.8%. In the Far East area, China grew 26.9%, India 55.7% and, after several sluggish months, Japan started again to grow sharply by 109.7%. With reference to the Americas, both the NAFTA countries and Brazil grew (+16.6% and +24.8%, respectively).

During the quarter, the cost of sales and other net operating costs amounted to EUR 211.6 million, with a ratio of 67.8% to sales, as against 65.3% for the same period in the previous year. Despite the increase in sales, the incidence of costs was greater in the first quarter of 2011 than in the same period of 2010 due to a higher cost of raw materials, which has not yet been transferred to selling prices.

Personnel expenses in the first quarter of 2011 amounted to EUR 62.1 million, or 19.9% of revenues, down compared to the same period of the previous year (22.0%). At 31 March 2011, the workforce numbered 6101 (5904 at 31 December 2010 and 5749 at 31 March 2010). The change compared to the previous periods is mainly due to the need to meet the increase in demand.

EBITDA for the quarter was EUR 38.5 million (12.3% of sales) compared to EUR 31.0 million in the first quarter of 2010 (12.7% of sales).

After depreciation and amortisation of EUR 18.8 million (EUR 17.2 million for the same period of the previous year), EBIT was EUR 19.7 million compared to EUR 13.8 million for the previous year.

Net interest expenses were EUR 2.6 million (EUR 3.6 million in the first quarter of 2010), broken down as follows: exchange rate gains virtually null (exchange losses of EUR 1.7 million in the first quarter of 2010); interest expenses of EUR 2.6 million (EUR 1.9 million in the same period of the previous year).

Pretax profit amounted to EUR 16.9 million (5.4% of sales), compared to EUR 9.7 million (4.0% of sales) in the first quarter of 2010. Based on tax rates applicable for the year under current tax regulations, estimated taxation amounted to EUR 5.5 million (EUR 3.2 million in the first quarter of 2010). Tax rate was 32.7%, compared to 33.0% of the first quarter of 2010. Net profit for the quarter amounted to EUR 11.2 million, up 68.6%.

Net debt at 31 March 2011 was EUR 263.7 million, compared to EUR 246.7 million at 31 December 2010 and EUR 269.8 million at 31 March 2010. The increase compared to 31 December 2010 was EUR 17.0 million, mainly as a result of the launch of the new production investments already described several times and of the net working capital absorption connected with the revenue increase.

Significant Events After 31 March 2011 On 29 April 2011, the Ordinary Shareholders' Meeting of Brembo S.p.A. resolved, among other things:

-- to approve Brembo S.p.A.'s financial statements, as well as acknowledge Brembo Group's consolidated financial statements for 2010, which showed revenues of EUR 1,075.3 million and a net profit of EUR 32.3 million;

-- to distribute a gross dividend of EUR 0.30 per outstanding share at ex-coupon date 9 May 2011;

-- to appoint the members of the Board of Directors and the Board of Statutory Auditors, which are mad e up as follows:

Board of Directors:
+----------------------+--------------------------------------------------+
|Name and Surname      |Position                                          |
|                      |                                                  |
+----------------------+--------------------------------------------------+
|Alberto Bombassei     |Executive. Confirmed as Chairman and Managing     |
|                      |Director.                                         |
+----------------------+--------------------------------------------------+
|Cristina Bombassei    |Executive                                         |
+----------------------+--------------------------------------------------+
|Matteo Tiraboschi     |Executive                                         |
+----------------------+--------------------------------------------------+
|Giovanni Cavallini    |Independent pursuant to the Finance Consolidation |
|                      |Law (TUF) and Corporate Governance Code()         |
+----------------------+--------------------------------------------------+
|Giancarlo Dallera()   |Independent pursuant to the Finance Consolidation |
|                      |Law (TUF) and Corporate Governance Code()         |
+----------------------+--------------------------------------------------+
|Pasquale Pistorio()   |Independent pursuant to the Finance Consolidation |
|                      |Law (TUF) and Corporate Governance Code()         |
+----------------------+--------------------------------------------------+
|Gianfelice Rocca      |Independent pursuant to the Finance Consolidation |
|                      |Law (TUF) and Corporate Governance Code()         |
+----------------------+--------------------------------------------------+
|Pierfrancesco Saviotti|Independent pursuant to the Finance Consolidation |
|                      |Law (TUF) and Corporate Governance Code()         |
+----------------------+--------------------------------------------------+
|Giovanna Dossena      |Independent pursuant to the Finance Consolidation |
|                      |Law (TUF) and Corporate Governance Code()         |
+----------------------+--------------------------------------------------+
|Umberto Nicodano      |Non-executive                                     |
+----------------------+--------------------------------------------------+
|Bruno Saita           |Non-executive                                     |
+----------------------+--------------------------------------------------+


Board of Statutory Auditors:
+--------------------------+--------------------+
| Acting Auditors          | Alternate Auditors |
+--------------------------+--------------------+
| Sergio Pivato (Chairman) | Gerardo Gibellini  |
+--------------------------+--------------------+
| Enrico Colombo           | Marco Salvatore    |
+--------------------------+--------------------+
| Mario Tagliaferri        |                    |
+--------------------------+--------------------+

Outlook The order backlog forecast confirms that sales will continue to show strong growth in the coming months across the various business segments in which the Group operates. The simultaneous launch of the four international production initiatives - a unique event in the history of Brembo - will require a considerable effort in terms of investments, cost containment and net working capital control.

Brembo Celebrates 50 Years of Operation

The year 2011 marks an historic milestone for Brembo: 50 years of operation punctuated by impressive achievements in the technical, competitive and commercial arena. On 11 January 1961, Emilio Bombassei and Italo Breda founded Officine Meccaniche di Sombreno, the original nucleus of today's Brembo. Among them was the current chairman, Alberto Bombassei, who had just recently turned 20 years of age. Since then, Brembo has completed a journey of half a century to become the undisputed leader in the high-performance braking systems market. In 1964, Brembo began to manufacture brake discs for cars; in 1972, it added brake discs for motorbikes, and in 1975 it made its debut in Formula One, where it provided its systems for the Ferrari single-seater. Over the years, technological innovation and constant research in the fields of materials and manufacturing techniques have led the Brembo brand to win great esteem at a global level.


In 1995, the company became listed on the Milan stock exchange and embarked upon a process of growth and internationalization that soon allowed it to exceed EUR 1 billion in revenues, with 35 facilities in 15 countries and a workforce of more than 6000. Today, Brembo is a constantly growing company that is celebrating its first 50 years of quality and innovation, ready to meet the new challenges posed by world markets.


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

Annexed hereto are the unaudited Income Statement and Balance Sheet.


Press Release http://hugin.info/144497/R/1515186/451430.pdf

Contact Information

  • For additional information:

    Investor Relator:
    Matteo Tiraboschi
    Tel. +39 035 605 2899
    e-mail : ir@brembo.it
    www.brembo.com

    Media Relations:
    Monica Michelini
    +39 035 6052173
    press@brembo.it

    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