Compared to Q1Alberto Bombassei: “In the first quarter of 2013, Brembo continued to report constant revenue and margin growth, despite the challenging economic scenario during the period. This result was enabled by the extensive internalisation achieved by the Group over time, as also witnessed by the additional investments planned for the current year.
Thanks to its consolidated global presence, the company is in a position to offset the declines in those markets, such as Italy and southern Europe generally, where demand for cars and motorbikes is continuing to show a significant decline.” 2012:
- Increase in revenues (+6.3% to €371.9 million)
- Good margin performance:
- EBITDA +10.2% to €47.3 million; EBIT +9.3% to €26.1 million
- Net investments for the quarter amounted to €37.6 million
- Net financial debt was €344.6 million, down by €5.3 million.
First Quarter 2013 results:
|EBITDA % on revenues
|EBIT % on revenues
|Pretax profit % on revenues
|Net profit % on revenues
|Net financial debt
Results for the First Quarter of 2013
Brembo’s Board of Directors chaired by Alberto Bombassei met today and approved the Group’s quarterly results as of 31 March 2013.
Net consolidated revenues for the period amounted to €371.9 million, up 6.3% compared to the first quarter of the previous year.
The sectors that most contributed to the growth in revenues in the first quarter of 2013 were car applications, up 13.3% compared to the same period of 2012, and motorbike applications, up 3%. The latter figure was especially positive considering the sharp decline in motorbike registrations in Europe during in the reporting period.
Sales of commercial vehicles decreased by 11.9% compared to the first quarter of 2012. Racing applications also showed a negative trend in the first quarter of 2013, down by 6.3% compared to 2012, due to the decision of some teams in major championships to postpone purchases of components.
At geographical level, Germany, which continues to be Brembo Group’s main market, showed an increase of 14.5%, followed by the North American market, up by 17.8%. Sales on the Chinese market also performed well, with a 50.2% increase compared to the previous year.
The other European markets did not show significant signs of improvement: sales in France and Italy dropped by 21.3% and 1.5%, respectively. The sole exception was represented by the United Kingdom, which reported a 2.8% increase, mainly due the positive results in sales of some major U.K. car makers. Both the Brazilian and Japanese markets shrank by 2.8% and 13.9%, respectively. Sales in India fell by 5.7%; however, on a like-for-like exchange rate basis, sales increased by 2.4% compared to the same period of the previous year. In the first three months of 2013, the cost of sales and other operating costs amounted to €248.3 million, representing 66.8% of revenues, down compared to 67.6% in the previous year.
Personnel costs amounted to €76.4 million or 20.5% of revenues, in line with the previous year’s figure of 20.2%. Workforce at 31 March 2013 numbered 7,060, increasing by 127 compared to Q1 2012 and by 123 compared to 31 December 2012.
EBITDA amounted to €47.3 million (12.7% of revenues), up 10.2% compared to first quarter of previous year.
EBIT amounted to €26.1 million (7% of revenues), up 9.3% compared to the first quarter of 2012.
Net interest expense for the first quarter amounted to €4.1 million (€0.5 million net interest income in Q1 2012); this item includes interest expense amounting to €3 million (€3.3 million in Q1 2012) and exchange losses for €1.1 million (exchange gains totalled €3.8 million in Q1 2012). It should be noted that exchange differences are mainly generated by the translation into foreign currencies of funding denominated in Euro.
Pretax profit was €22 million (5.9% of revenues), compared to €23.8 million for Q1 2012. Based on the tax rates applicable under current tax regulations, estimated taxes amounted to €1.5 million (€3 million in Q1 2012), with a tax rate of 6.6% compared to 12.5% for the previous year.
The sharp fall in the tax rate can be attributed to the tax benefits obtained in the Polish special economic zone, where the new brake disc plant is located.
The period ended with a net profit of €20.6 million, compared to €21.1 million for the previous year.
Net financial debt at 31 March 2013 was €344.6 million, decreasing by €5.3 million compared to €349.9 million at 31 March 2012.
Significant Events after 31 March 2013 Brembo’s General Shareholders’ Meeting, which was held on 23 April 2013, approved the Financial Statements for the year ended 31 December 2012 and the distribution of a gross dividend of €0.40 per share outstanding at ex-coupon date. The dividend will be paid as of 16 May 2013, ex-coupon 13 May 2013.
Order book forecasts confirm that revenues will continue to rise for the rest of the year in line with the figures recorded for the first quarter.