Brembo Q3 2018 Results

11/7/2018

REVENUE AT 30 SEPTEMBER 2018 TO €1,999.7 MILLION, EBITDA AT €380.0 MILLION, EBIT AT €266.8 MILLION. NET FINANCIAL DEBT DOWN BY €22.4 MILLION COMPARED TO 30 JUNE 2018.




Compared to the first nine months of 2017

 

Revenues grew by 8.0% to €1,999.7 million

 

EBITDA at €380.0 million (EBITDA margin: 19.0%), EBIT at €266.8 million (EBIT margin: 13.3%);

Net profit
was €197.2 million (+0.4%)

Net financial debt was €240.7 million, down by €22.4 million compared to 30 June 2018

 

Net investments amounted to €184.1 million

 

Chairman Alberto Bombassei stated: “Brembo achieved good results in the third quarter of 2018. The Company is continuing determinedly with its process of growth and consolidation on both its main markets of operation and on markets where it has further increased its production capacity in recent years, such as the USA, China and India. We are also stepping up our commitment to research and development, in terms of both investments and the creation of dedicated facilities, in order to ensure the innovation necessary to keep pace with — or even to anticipate — the future needs of the automotive industry, which is undergoing rapid transformation, as may be seen from the gradual emergence of EVs.”

 

Executive Deputy Chairman Matteo Tiraboschi stated: “With regard to the figures approved today by the Board of Directors, I deem it important to emphasise the positive results achieved in the third quarter driven by our performance on the U.S. market, and activity at our new plants in China, Poland and North America, which are now near maximum productivity levels, in full accordance with Brembo strategic plan and in line with the investment plan. Although the tensions caused by macroeconomic scenarios remain considerably high, the solidity of our fundamentals and the dynamism of our operations at the global level allow us to look towards the remainder of 2018 with cautious optimism."


 

Results for the period ended 30 September 2018


Brembo’s Board of Directors chaired by Alberto Bombassei met today and approved the Group’s results at 30 September 2018. Brembo Group’s net consolidated revenue for the reporting period amounted to €1,999.7 million, up 8.0% compared to the same period of the previous year.

On a like-for-like exchange rate basis, revenue increased by 11.0%. Almost all market segments in which the Group operates positively contributed to the results of the period under review: car applications rose by 8.0%, motorbike applications by 7.0% and those for commercial vehicles by 14.7%. By contrast, the racing sector declined slightly (-3.2%).

At geographical level, sales for the first nine months of 2018 shrank by 4.0% in Italy compared to the same period of the previous year, whereas growth was reported by Germany (+9.2%), France (+25.9%) and the United Kingdom (+9.1%).

In Asia, the Indian market rose by 15.0% (+27.0% on a like-for-like exchange rate basis), China grew by 13.4% (+16.4% on a like-for-like exchange rate basis), whereas Japan declined by 6.9% (-6.2% on a like-for-like exchange rate basis). Sales in North America (USA, Canada and Mexico) rose by 1.5% (+8.2% on a like-for-like exchange rate basis). South America decreased by 7.9%, but reported a 20.2% increase on a like-for-like exchange rate basis. In the period ended 30 September 2018, the cost of sales and other net operating costs amounted to €1,281.6 million, up 9.5% compared to €1,170.2 million for the same period of the previous year.

In percentage terms, the ratio to sales of this item increased slightly to 64.1% from 63.2% for the same period of 2017. Personnel expenses totalled €350.8 million, with a 17.5% ratio to sales, in line with the same period of the previous year. At 30 September 2018, workforce numbered 10,595 (9,666 at 30 September 2017 and 9,837 at 31 December 2017).

EBITDA for the period amounted to €380.0 million (EBITDA margin: 19.0%), up by 2.9% compared to the same period of 2017. Amortisation, depreciation and impairment losses rose by 14.5% to €113.2 million. EBIT was €266.8 million (EBIT margin: 13.3%), down 1.3% compared to the same period of 2017. In the reporting period, net interest expense totalled €10.6 million (€6.1 million in 2017). This item included interest expense amounting to €7.1 million (€6.7 million in the first nine months of 2017) and net exchange losses of €3.5 million (net exchange gains of €0.6 million in the same period of the previous year).

Pre-tax profit was €256.4 million (12.8% of sales) compared to €264.4 million for the same period of 2017. Based on the tax rates applicable under current tax regulations, estimated taxes amounted to €57.3 million (€64.9 million in 2017), with a tax rate of 22.3% compared to 24.5% for the same period of 2017. The reporting period ended with a net profit of €197.2 million, up 0.4% compared to €196.4 million for the same period of the previous year.

Net financial debt at 30 September 2018 stood at €240.7 million, decreasing by €22.4 million compared to 30 June 2018 (€263.1 million).

Q3 2018 Results

In the third quarter of 2018 alone, Brembo Group’s net consolidated revenue rose by 12.0% to €660.1 million (+13.1% on a like-for-like exchange rate basis). EBITDA amounted to €120.1 million (EBITDA margin: 18.2%), up by 5.8% compared to Q3 2017. EBIT was €80.7 million (EBIT margin: 12.2%), down slightly (-0.1%) compared to Q3 2017. The period ended with a net profit of €57.1 million, down 4.4% compared to €59.8 million for the same period of the previous year.


 

Foreseeable Evolution

The order backlog projections for the remaining part of the year confirm the trends reported to date, although the macroeconomic and industry scenario remains complex. The Company will continue to closely monitor the evolution of the industry dynamics.


 

The manager in charge of the Company’s financial reports, Andrea Pazzi, 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 Statement of Income, the Statement of Financial Position and the Cash Flow Statement​



 

 
 
 
 
 
 
 
 
                   

 

Brembo S.p.A. | P.IVA 00222620163

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