SOURCE: BREMBO

May 14, 2007 13:22 ET

The Board of Directors of Brembo approves financial results at 31 March 2007

CURNO, ITALY -- (MARKET WIRE) -- May 14, 2007 --


Sales +13,8%

EBITDA +11,3

Net profit +15,3%

Q1 2007

+------------------+---------+---------+------------+
|    EUR MLN       |  Q1 2007|  Q1 2006|  Var% 07/06|
+------------------+---------+---------+------------+
|  Sales           |    229.3|    201.5|      +13.8%|
+------------------+---------+---------+------------+
|  EBITDA          |     33.4|     30.0|      +11.3%|
+------------------+---------+---------+------------+
|  EBIT            |     22.7|     21.1|       +7.2%|
+------------------+---------+---------+------------+
|  Pre-tax profit  |     19.6|     18.5|       +6.0%|
+------------------+---------+---------+------------+
|  Net Profit      |     12.6|     10.9|      +15.3%|
+------------------+---------+---------+------------+
+------------------+---------+---------+------------+
DATA EXPRESSED ACCORDING TO IAS/IFRS.

The results of the quarter

Sales in the quarter amount to EUR 229.3 million, up 13.8% over the same quarter last year.

Good performance of the passenger car segment (+ 14.7%), also thanks to the after market sales.

Commercial vehicles sales were up 24.0% in the quarter benefiting from the continuing positive cycle of road transportation and the progressive ramp up of DaimlerChrysler platform.

The motorcycle segment recorded a +6.8% turnover increase as well as the racing segment (+5.5%).

From a geographic point of view, very good growth in the German market (+24.2%) and the other UE countries (+30.5%) due to the positive evolution of after market and original equipment sales. A turnover increase recorded in the French market (+13.3%) and Italian market (+10.5%).

Brazil keeps on growing (+18.9%), while sales in Japan, expected to increase during the next twelve months, were slow during the quarter (- 13.0%); sales in the NAFTA area (-10.2%) suffered the negative market trend.

In the quarter, the cost of sales and other operative costs amount to EUR 152.3 million, with an incidence of 66.4% on sales, compared to 65.1% of the same period of the previous year. The greater incidence is due to several factors: a different sales mix, in comparison with the same period of 2006, and a significant increase of costs of the main raw materials, all positioned around the all time peak.

The personnel expenses amount to EUR 43.5 million, +8.2% compared to the previous quarter, with an incidence on revenues that decreases from 20.0% to 19.0%.

EBITDA is up 11.3% and goes from EUR 30.0 million (14.9% of revenues) to EUR 33.4 million (14.6% of revenues), as a result of the above mentioned factors.

Depreciation and amortization in the quarter on approval amount to EUR 10.8 million, up 21.1% over 2006 first quarter. These are related to both investments made in the last quarters (i.e. polish foundry) and to capitalized development costs.

EBIT amounts to EUR 22.7 million, or 9.9% of sales, compared to EUR 21.1 million (10.5% of sales) in the same quarter of the previous year.

Net financial charges, amounting to EUR 31.1 million, are composed by negative exchange rate differences for EUR 0.6 million (2006 same quarter: negative for EUR 1.4 million) and financial charges for EUR 2.5 million (EUR 1.6 million in 2006). The increase of financial charges is mainly due to the fact that the previous year included a positive fair value of a financial derivative instrument held for trading.

Estimated taxes for the quarter amounts to EUR 6.8 million, or 34.7% of income before taxes (39.2% in 2006 first quarter). The decrease of tax rate compared to 2006 is due to a different country mix of the consolidated taxable income.

The first quarter investments amount to EUR 10.1 million, mainly to gear up installed capacity in Italy in order to match the increasing demand.

Net financial indebtedness rises up to EUR 199.1 million at 31.03.2007, compared to EUR 193.3 million at 31.12.2006, due to an increase of working capital linked to the strong sales growth..

Significant Events After the Close of the Quarter

From a commercial point of view, in April Brembo reached an agreement with Toyota Motor Corporation for the supply of new Lexus IS-F.

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

The order portfolio seems to confirm a good performance of Brembo Group for the current year, but there is still a situation of tension on costs of raw materials and energy.

Please see attached schemes for further details on quarterly results.


CONSOLIDATED INCOME STATEMENT - IFRS

+-------------------------+----------+----------+------+------+
|                         |    A     |    B     |(A-B) |      |
+-------------------------+----------+----------+------+------+
|(in million of euro)     |31.03.2007|31.03.2006|CHANGE|     %|
+-------------------------+----------+----------+------+------+
|Sales of good and        |     229.3|     201.5|  27.8| 13.8%|
|services                 |          |          |      |      |
+-------------------------+----------+----------+------+------+
|Other revenues and income|       1.8|       0.7|   1.1|166.7%|
+-------------------------+----------+----------+------+------+
|Costs for capitalised    |       2.6|       2.8| (0.2)| -6.7%|
|internal works           |          |          |      |      |
+-------------------------+----------+----------+------+------+
|Cost of raw materials,   |   (114.9)|    (99.0)|(15.9)| 16.1%|
|consumables, goods and   |          |          |      |      |
|change in inventories    |          |          |      |      |
+-------------------------+----------+----------+------+------+
|Other operating costs for|    (41.8)|    (35.6)| (6.1)| 17.2%|
|production               |          |          |      |      |
+-------------------------+----------+----------+------+------+
|Personnel expenses       |    (43.5)|    (40.2)| (3.3)|  8.2%|
+-------------------------+----------+----------+------+------+
|GROSS OPERATING INCOME   |      33.4|      30.0|   3.4| 11.3%|
+-------------------------+----------+----------+------+------+
|% of sales               |     14.6%|     14.9%|      |      |
+-------------------------+----------+----------+------+------+
|Depreciation,            |    (10.8)|     (8.9)| (1.9)| 21.1%|
|amortization and other   |          |          |      |      |
|write-downs              |          |          |      |      |
+-------------------------+----------+----------+------+------+
|NET OPERATING INCOME     |      22.7|      21.1|   1.5|  7.2%|
+-------------------------+----------+----------+------+------+
|% of sales               |      9.9%|     10.5%|      |      |
+-------------------------+----------+----------+------+------+
|Net financial income     |     (3.1)|     (2.7)| (0.4)| 16.6%|
|(charges)                |          |          |      |      |
+-------------------------+----------+----------+------+------+
|Net financial income     |       0.1|       0.0|   0.0|204.8%|
|(charges) from           |          |          |      |      |
|investments              |          |          |      |      |
+-------------------------+----------+----------+------+------+
|INCOME BEFORE TAXES      |      19.6|      18.5|   1.1|  6.0%|
+-------------------------+----------+----------+------+------+
|% of sales               |      8.6%|      9.2%|      |      |
+-------------------------+----------+----------+------+------+
|Taxes                    |     (6.8)|     (7.3)|   0.4| -6.1%|
+-------------------------+----------+----------+------+------+
|INCOME BEFORE MINORITY   |      12.8|      11.2|   1.6| 13.9%|
|INTERESTS                |          |          |      |      |
+-------------------------+----------+----------+------+------+
|% of sales               |      5.6%|      5.6%|      |      |
+-------------------------+----------+----------+------+------+
|Minority interests       |     (0.2)|     (0.3)|   0.1|-31.6%|
+-------------------------+----------+----------+------+------+
|NET INCOME (LOSS) FOR THE|      12.6|      10.9|   1.7| 15.3%|
|PERIOD                   |          |          |      |      |
+-------------------------+----------+----------+------+------+
|% of sales               |      5.5%|      5.4%|      |      |
+-------------------------+----------+----------+------+------+
|Earnings per share (euro)|      0.19|      0.16|      |      |
+-------------------------+----------+----------+------+------+
CONSOLIDATED BALANCE SHEET - IFRS
+-------------------------+---------+---------+---------+--------+------+
|                         |   A     |    B    |    C    |  A-B   | A-C  |
+-------------------------+---------+---------+---------+--------+------+
|(in million of euro)     |  31.03  |  31.12  |  31.03  |  CHANGE|CHANGE|
|                         |  2007   |  2006   |  2006   |        |      |
+-------------------------+---------+---------+---------+--------+------+
|ASSETS                   |         |         |         |        |      |
+-------------------------+---------+---------+---------+--------+------+
|NON-CURRENT ASSETS       |         |         |         |        |      |
+-------------------------+---------+---------+---------+--------+------+
|Property, plant,         |    291.0|    294.7|    276.7|   (3.7)|  14.3|
|equipment and other      |         |         |         |        |      |
|equipment                |         |         |         |        |      |
+-------------------------+---------+---------+---------+--------+------+
|Development costs        |     26.9|     25.3|     20.6|     1.6|   6.3|
+-------------------------+---------+---------+---------+--------+------+
|Goodwill and other       |     15.3|     15.5|     14.9|   (0.2)|   0.4|
|undefined useful life    |         |         |         |        |      |
|assets                   |         |         |         |        |      |
+-------------------------+---------+---------+---------+--------+------+
|Other intangible assets  |      6.3|      6.5|      5.2|   (0.1)|   1.1|
+-------------------------+---------+---------+---------+--------+------+
|Investments accounted for|     15.3|     15.2|     15.0|     0.1|   0.3|
|using the equity method  |         |         |         |        |      |
+-------------------------+---------+---------+---------+--------+------+
|Other financial assets   |      5.6|      5.6|      5.6|   (0.1)|   0.0|
|(investments in other    |         |         |         |        |      |
|companies and            |         |         |         |        |      |
|derivatives)             |         |         |         |        |      |
+-------------------------+---------+---------+---------+--------+------+
|Other non-current assets |      1.3|      1.3|      2.0|   (0.0)| (0.7)|
+-------------------------+---------+---------+---------+--------+------+
|Deferred tax assets      |      7.1|      7.2|      2.7|   (0.1)|   4.4|
+-------------------------+---------+---------+---------+--------+------+
|TOTAL NON-CURRENT ASSETS |    368.8|    371.3|    342.7|   (2.5)|  26.1|
+-------------------------+---------+---------+---------+--------+------+
|                         |         |         |         |  (0.7%)|  7.6%|
+-------------------------+---------+---------+---------+--------+------+
|CURRENT ASSETS           |         |         |         |        |      |
+-------------------------+---------+---------+---------+--------+------+
|Inventories              |    144.4|    146.6|    145.8|   (2.2)| (1.3)|
+-------------------------+---------+---------+---------+--------+------+
|Trade receivables and    |    210.4|    182.6|    188.5|    27.8|  22.0|
|receivables from other   |         |         |         |        |      |
|Group companies          |         |         |         |        |      |
+-------------------------+---------+---------+---------+--------+------+
|Other receivables and    |     32.9|     32.1|     37.6|     0.8| (4.6)|
|current assets           |         |         |         |        |      |
+-------------------------+---------+---------+---------+--------+------+
|Financial current assets |      0.6|      0.5|      9.9|     0.1| (9.3)|
|and derivatives          |         |         |         |        |      |
+-------------------------+---------+---------+---------+--------+------+
|Cash and cash equivalents|     49.4|     40.7|     33.7|     8.7|  15.7|
+-------------------------+---------+---------+---------+--------+------+
|TOTAL CURRENT ASSETS     |    437.8|    402.6|    415.4|    35.3|  22.4|
+-------------------------+---------+---------+---------+--------+------+
|                         |         |         |         |    8.8%|  5.4%|
+-------------------------+---------+---------+---------+--------+------+
|NON-CURRENT ASSETS HELD  |      0.0|      0.4|      0.0|   (0.4)|   0.0|
|FOR SALE AND DISCONTINUED|         |         |         |        |      |
|OPERATI                  |         |         |         |        |      |
+-------------------------+---------+---------+---------+--------+------+
|                         |         |         |         |(100.0%)|  0.0%|
+-------------------------+---------+---------+---------+--------+------+
|TOTAL ASSETS             |    806.6|    774.3|    758.1|    32.3|  48.5|
+-------------------------+---------+---------+---------+--------+------+
|EQUITY AND LIABILITIES   |         |         |         |        |      |
+-------------------------+---------+---------+---------+--------+------+
|GROUP EQUITY             |         |         |         |        |      |
+-------------------------+---------+---------+---------+--------+------+
|Share capital            |     34.7|     34.7|     34.7|     0.0|   0.0|
+-------------------------+---------+---------+---------+--------+------+
|Other reserves           |    106.3|    107.6|    120.8|   (1.3)|(14.5)|
+-------------------------+---------+---------+---------+--------+------+
|Retained earnings        |    115.8|     72.9|     72.7|    43.0|  43.1|
+-------------------------+---------+---------+---------+--------+------+
|Profit / (loss) for the  |     12.6|     42.9|     10.9|  (30.4)|   1.7|
|period                   |         |         |         |        |      |
+-------------------------+---------+---------+---------+--------+------+
|TOTAL GROUP EQUITY       |    269.5|    258.1|    239.1|    11.3|  30.3|
+-------------------------+---------+---------+---------+--------+------+
|                         |         |         |         |    4.4%| 12.7%|
+-------------------------+---------+---------+---------+--------+------+
|MINORITY INTERESTS       |     12.5|     12.4|     11.9|     0.1|   0.6|
+-------------------------+---------+---------+---------+--------+------+
|                         |         |         |         |    0.6%|  5.2%|
+-------------------------+---------+---------+---------+--------+------+
|TOTAL EQUITY             |    282.0|    270.6|    251.0|    11.4|  30.9|
+-------------------------+---------+---------+---------+--------+------+
|NON-CURRENT LIABILITIES  |         |         |         |        |      |
+-------------------------+---------+---------+---------+--------+------+
|Non-current payables to  |     29.0|     30.9|     38.8|   (1.9)| (9.8)|
|banks                    |         |         |         |        |      |
+-------------------------+---------+---------+---------+--------+------+
|Other non-current        |     72.4|     73.2|     71.0|   (0.8)|   1.4|
|financial payables       |         |         |         |        |      |
+-------------------------+---------+---------+---------+--------+------+
|Other non-current        |      6.6|      9.1|      6.8|   (2.5)| (0.2)|
|payables                 |         |         |         |        |      |
+-------------------------+---------+---------+---------+--------+------+
|Provisions for           |      4.6|      5.0|      3.2|   (0.4)|   1.4|
|contingencies and charges|         |         |         |        |      |
+-------------------------+---------+---------+---------+--------+------+
|Long term provisions for |     28.9|     28.7|     27.7|     0.2|   1.2|
|employee benefits        |         |         |         |        |      |
+-------------------------+---------+---------+---------+--------+------+
|Deferred tax liabilities |     20.8|     20.1|     17.0|     0.7|   3.8|
+-------------------------+---------+---------+---------+--------+------+
|TOTAL NON-CURRENT        |    162.3|    167.0|    164.5|   (4.7)| (2.2)|
|LIABILITIES              |         |         |         |        |      |
+-------------------------+---------+---------+---------+--------+------+
|                         |         |         |         |  (2.8%)|(1.3%)|
+-------------------------+---------+---------+---------+--------+------+
|CURRENT LIABILITIES      |         |         |         |        |      |
+-------------------------+---------+---------+---------+--------+------+
|Current payables to banks|    144.4|    127.1|    144.6|    17.3| (0.2)|
+-------------------------+---------+---------+---------+--------+------+
|Other current financial  |      4.3|      4.3|      3.3|     0.0|   1.0|
|payables                 |         |         |         |        |      |
+-------------------------+---------+---------+---------+--------+------+
|Trade payables and       |    160.6|    161.1|    153.0|   (0.5)|   7.6|
|payables to other Group  |         |         |         |        |      |
|companies                |         |         |         |        |      |
+-------------------------+---------+---------+---------+--------+------+
|Tax payables             |     11.0|      7.5|      4.5|     3.6|   6.5|
+-------------------------+---------+---------+---------+--------+------+
|Other current payables   |     42.0|     36.9|     37.2|     5.2|   4.9|
+-------------------------+---------+---------+---------+--------+------+
|TOTAL CURRENT LIABILITIES|    362.4|    336.8|    342.6|    25.6|  19.8|
+-------------------------+---------+---------+---------+--------+------+
|                         |         |         |         |    7.6%|  5.8%|
+-------------------------+---------+---------+---------+--------+------+
|TOTAL EQUITY AND         |    806.6|    774.3|    758.1|    32.3|  48.5|
|LIABILITIES              |         |         |         |        |      |
+-------------------------+---------+---------+---------+--------+------+
GROSS SALES BREAKDOWN BY GEOGRAPHICAL AREA AND APPLICATION
+--------------------+----------+------+----------+------+-----+------+
|                    |    A     |      |    B     |      |     |      |
+--------------------+----------+------+----------+------+-----+------+
|GEOGRAPHICAL AREA   |31.03.2007|     %|31.03.2006|     %|  A-B|     %|
+--------------------+----------+------+----------+------+-----+------+
|(in million of euro)|          |      |          |      |     |      |
+--------------------+----------+------+----------+------+-----+------+
|Italy               |      58.4| 25.1%|      52.9| 25.8%|  5.6| 10.5%|
+--------------------+----------+------+----------+------+-----+------+
|Germany             |      63.2| 27.1%|      50.8| 24.8%| 12.3| 24.2%|
+--------------------+----------+------+----------+------+-----+------+
|France              |      13.8|  5.9%|      12.2|  6.0%|  1.6| 13.3%|
+--------------------+----------+------+----------+------+-----+------+
|United Kingdom      |      17.9|  7.7%|      16.7|  8.2%|  1.2|  7.2%|
+--------------------+----------+------+----------+------+-----+------+
|Other EU countries  |      38.1| 16.4%|      29.2| 14.3%|  8.9| 30.5%|
+--------------------+----------+------+----------+------+-----+------+
|NAFTA Countries     |      21.8|  9.4%|      24.3| 11.9%|(2.5)|-10.2%|
+--------------------+----------+------+----------+------+-----+------+
|Asia                |       7.0|  3.0%|       8.0|  3.9%|(1.0)|-13.0%|
+--------------------+----------+------+----------+------+-----+------+
|Brazil              |       7.2|  3.1%|       6.1|  3.0%|  1.2| 18.9%|
+--------------------+----------+------+----------+------+-----+------+
|Other Countries     |       5.5|  2.4%|       4.5|  2.2%|  1.0| 23.1%|
+--------------------+----------+------+----------+------+-----+------+
|Total               |     232.9|100.0%|     204.6|100.0%| 28.3| 13.8%|
+--------------------+----------+------+----------+------+-----+------+
|                    |         A|      |         B|      |     |      |
+--------------------+----------+------+----------+------+-----+------+
|APPLICATION         |31.03.2007|     %|31.03.2006|     %|  A-B|     %|
+--------------------+----------+------+----------+------+-----+------+
|(in million of euro)|          |      |          |      |     |      |
+--------------------+----------+------+----------+------+-----+------+
|Auto                |     140.4| 60.3%|     122.4| 59.8%| 18.0| 14.7%|
+--------------------+----------+------+----------+------+-----+------+
|Motorbike           |      28.4| 12.2%|      26.6| 13.0%|  1.8|  6.8%|
+--------------------+----------+------+----------+------+-----+------+
|Commercial Vehicles |      37.1| 15.9%|      29.9| 14.6%|  7.2| 24.0%|
+--------------------+----------+------+----------+------+-----+------+
|Racing              |      23.5| 10.1%|      22.3| 10.9%|  1.2|  5.5%|
+--------------------+----------+------+----------+------+-----+------+
|Miscellaneous       |       3.4|  1.5%|       3.4|  1.6%|  0.1|  2.5%|
+--------------------+----------+------+----------+------+-----+------+
|Total               |     232.9|100.0%|     204.6|100.0%| 28.3| 13.8%|
+--------------------+----------+------+----------+------+-----+------+
+--------------------+----------+------+----------+------+-----+------+
(graphics are available in attachment)
+-------------------------+------+------+------+------+------+
|                         |Q1 '06|Q2 '06|Q3 '06|Q4 '06|Q1 '07|
+-------------------------+------+------+------+------+------+
|Net operating            | 10.5%| 11.2%|  8.9%|  8.7%|  9.9%|
|income/Sales             |      |      |      |      |      |
+-------------------------+------+------+------+------+------+
|Income before taxes/Sales|  9.2%|  9.9%|  6.3%|  9.3%|  8.6%|
+-------------------------+------+------+------+------+------+
|Capital Expenditure/Sales|  7.7%| 10.5%|  8.7%| 14.6%|  4.4%|
+-------------------------+------+------+------+------+------+
|Net Financial indebtednes| 88.5%| 99.4%| 93.7%| 71.4%| 70.6%|
|s/Shareholders' equity   |      |      |      |      |      |
+-------------------------+------+------+------+------+------+
|Financial charges/Sales  |  1.3%|  1.3%|  2.7%| -0.4%|  1.4%|
+-------------------------+------+------+------+------+------+
|Financial charges/Net    | 12.6%| 11.3%| 29.8%| -5.1%| 13.7%|
|Operating Income         |      |      |      |      |      |
+-------------------------+------+------+------+------+------+
|ROI                      | 16.0%| 16.9%| 15.1%| 14.4%| 16.9%|
+-------------------------+------+------+------+------+------+
|ROE                      | 17.0%| 19.0%| 12.8%| 19.5%| 17.2%|
+-------------------------+------+------+------+------+------+
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Contact Information

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