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| Thursday, 5 August 2010, 14:11 HKT/SGT | |
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Source: Brembo | |
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Stezzano, Italy, Aug 5, 2010 - (ACN Newswire) -
- Revenues: EUR 531.6 million (+31.5%);
- EBITDA: EUR 67.9 million (+40.8%);
- EBIT: EUR 31.8 million (+215.4%);
- Net result: EUR 18.7 million (up over EUR 19 million compared to 30 June 2009);
- Net financial debt: EUR 268.8 million, down EUR 34.6 million (-11.4%)
Highlights for the first half of 2010:
(EUR million) H1 2010 H1 2009 % 10/09
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Revenues 531.6 404.2 +31.5%
EBITDA 67.9 48.2 +40.8%
EBIT 31.8 10.1 +215.4%
Pretax profit 26.6 3.2 +726.2%
Net profit 18.7 (0.5) +19.1mn
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30.6.10 30.6.209
Net financial debt 268.8 303.4 -11.4%
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Highlights of the second quarter of 2010:
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Revenues 287.5 208.0 +38.2%
EBITDA 36.9 31.0 +19.3%
EBIT 18.1 9.8 +85.2%
Pretax profit 17.0 9.2 +85.2%
Net profit 12.0 6.8 +76.8%
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Group activities in the first half of 2010
Net revenues for the first half of 2010 amounted to EUR 531.6 million, marking a significant increase compared to the same period of 2009 (+31.5%). This period also included EUR 8.8 million of sales of the Chinese foundry acquired at beginning of 2010. On a like-for-like basis, sales increased 29.3%.
Growth for the period mainly referred to car applications (+42.3%) and commercial vehicles (+41.7%); the motorbike sector increased slightly (+2.6%), whereas the racing sector and especially the passive safety sector decreased by 2.2% and 13.2%, respectively.
At geographical level, the recovery was significant in almost all of the markets where the Group operates and was particularly strong in emerging countries: China grew 121.4%, also thanks to the acquisition carried out (+42.9% on a like-for-like basis), India grew 40.9% and Brazil 35%. Among traditional markets, sales increased 40.3% in Germany, which is once again the Group's main reference market, accounting for 21.5% of total turnover; the United Kingdom and the Nafta area showed an excellent turnover, with an increase of 36.1% and 49%, respectively; a good performance was also reported on the French market, which grew by 27.7%, and Europe in general, whereas Italy showed a more limited increase by 3.7%. Japan showed a decrease by 23.5% in the six-month period, however marking a turnaround in the second quarter, when it improved by 19.3% compared to the second quarter of the previous year.
During H1 2010, the cost of sales and other operating costs amounted to EUR 356.1 million, with a ratio of 67% to sales, as against 64.8% for the same period in the previous year. The ratio of these costs, despite a sharp recovery of turnover and the constant strict cost control policy, increased, as the 2009 item "Other revenues and income" included the compensation from a supplier in the amount of EUR 4 million and the capital gain on the sale of a 50% stake in Brembo SGL Carbon Ceramic Brakes S.p.A. for a total amount of EUR 3.9 million. Moreover, subsidies for research investments, which amounted to EUR 1.2 million in 2009, are not present in 2010.
Net of the above-mentioned effects the 2009 ratio of these costs would be in line with the one of the period under exam.
Development costs capitalised as intangible assets amounted to EUR 5.8 million, virtually unvaried compared to the first half of 2009.
In the period under review, personnel expenses amounted to EUR 107.6 million, with a ratio of 20.2% to sales, decreasing compared to the same period of 2009 (23.3%). At 30 June 2010, the workforce numbered 5,603 (5,417 at 31 December 2009 and 5,375 at 30 June 2009). The increase compared to year-end 2009 is mainly linked to the acquisition of the foundry in China (142 workers).
In the first half 2010, EBITDA amounted to EUR 67.9 million (12.8% of revenues), with an increase of 40.8% compared to EUR 48.2 million of the first half of 2009 (11.9% of revenues).
EBIT amounted to EUR 31.8 million, compared to EUR 10.1 million of the previous year, after depreciation and amortisation of EUR 36.1 million, compared to EUR 38.1 million of first half of 2009, which included EUR 3.8 million of extraordinary write-offs.
Net interest expenses were EUR 4.1 million (EUR 6.9 million in the first half of 2009), broken down as follows: negligible net exchange rate gains (a loss of EUR 0.7 million in 2009); interest expenses of EUR 4.1 million (EUR 6.2 million in the same period of the previous year). The sharp fall in interest expenses (-40.2%) is due to the lower level of average debt and especially to the reduction in the interest rates applied.
Income before taxes amounted to EUR 26.6 million, compared to EUR 3.2 in H1 2009.
Based on tax rates applicable for the year under current tax regulations, estimated taxes amounted to EUR 8.1 million (EUR 4.3 million in H1 2009). The tax rate for the period was 30.5%.
The period ended with a net income of EUR 18.7 million, compared to a net loss of EUR 0.5 million for H1 2009.
Group's results for the second quarter of 2010
In the second quarter alone, revenues amounted to EUR 287.5 million, up 38.2% compared to the same period of 2009 (+35.9% on a like-for-like basis).
EBITDA amounted to EUR 36.9 million (12.8% of revenues), up by 19.3% compared to the previous year. EBIT was EUR 18.1 million (6.3% of revenues).
The quarter ended with a net income of EUR 12 million, up 76.8% compared to EUR 6.8 million for the same period of the previous year.
Significant reduction of net financial position
At 30 June 2010, the net financial position was EUR 268.8 million, with a decrease of EUR 34.6 million (-11.4%) compared to 30 June 2009.
Various medium-/long-term loans were approved by leading financial institutions, two of which, for a total amount of EUR 80 million, were disbursed in the second quarter of 2010. These new loans have allowed Brembo to increase the non-current portion of its debt to over 66% of the total.
New Technical Center opened in Plymouth, Michigan (USA)
Brembo North America's new headquarters in Plymouth, Michigan (USA) was inaugurated on 24 June. The facility, which also hosts the new Research and Development Center, will offer North American customers a full range of services from design to development, engineering and product sale and distribution.
Brembo has had a presence in the NAFTA area since 1998, where it operates two facilities located in Homer, Michigan, and Apodaca, Mexico, in addition to the Plymouth location.
On 24 June, the Company also announced that the Homer plant will begin to manufacture and assemble callipers and full side-wheel modules for high-performance motor vehicles in late 2010.
Significant events after 30 June 2010
The Brembo Group's structure has been streamlined as follows:
- In Q3 2010 will enter into effect the merger into Brembo Mexico S.A. de C.V voted on 21 June 2010 by the Shareholders' Meetings of the two Mexican firms Brembo Mexico S.A. de C.V. (formerly Brembo Mexico Puebla S.A. de C.V.) and Brembo Mexico Apodaca S.A. de C.V.;
- On 3 August 2010, Brembo S.p.A. and the minority-interest shareholders of Brembo Performance S.p.A entered into a new agreement (consensually terminating that dated 19 February 2008). Under this new agreement, Brembo S.p.A. undertakes to acquire 30% of the shares of Brembo Performance S.p.A. Thereafter, the former minority -interest shareholders of Brembo Performance will acquire 35% of Sabelt S.p.A.. The net effect of the transaction will be a cash inflow of approximately EUR 5 million for the Brembo Group.
Outlook
The results for the first six months of 2010 and the order portfolio appear to confirm expectations of an improvement in terms of sales and margins over the rest of the year.
Brembo will continue to take severe measures aimed at limiting working capital and costs while nonetheless increasing its investment expenditures in order to support the Group's international growth.
Contact:
Investor Relator
Matteo Tiraboschi
Tel. +39 035 605 2899
ir@brembo.it
Communications Manager
Gianfranco De Marchi
Tel. +39 035 605 2708
Cell. +39 336 634686
press@brembo.it
Topic: Earnings
Source: Brembo
Sectors: Automotive
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From the Asia Corporate News Network
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