BREMBO : Le Conseil d'Administration de Brembo a approuvé les résultats pour le troisième trimestre 2010

Communiqué de Presse


Stezzano, le 12 novembre 2010

Pour diffusion immédiate

Le Conseil d'Administration de Brembo a approuvé les résultats pour le troisième trimestre 2010 :
- Chiffre d'affaires de 268,9 millions d'euros (+ 28 % par rapport au 3ème trimestre 2009)
- Marge d'exploitation brute (EBITDA) de 33 millions d'euros (+ 30,5 % par rapport au 3ème trimestre 2009
- Marge d'exploitation nette (EBIT) de 15,4 millions d'euros (+ 210,3 % par rapport au 3ème trimestre 2009
- Bénéfice net de 9,0 millions d'euros (+ 161 % par rapport au 3ème trimestre 2009)

Endettement net de 273,6 millions d'euros (- 4,5 % par rapport au 30 septembre 2009).

Le troisième trimestre en quelques chiffres :

+----------------------+--------------+--------------+------------+
|   (millions d'euros) |  3ème T 2010 |  3ème T 2009 |  D % 10/09 |
+----------------------+--------------+--------------+------------+
|  Chiffre d'affaires  |        268,9 |        210,1 |   + 28,0 % |
+----------------------+--------------+--------------+------------+
|  EBITDA              |         33,0 |         25,3 |   + 30,5 % |
+----------------------+--------------+--------------+------------+
|  EBIT                |         15,4 |          5,0 |  + 210,3 % |
+----------------------+--------------+--------------+------------+
|  Bénéfice avant impôt|         12,8 |          2,1 |  + 505,8 % |
+----------------------+--------------+--------------+------------+
|  Bénéfice après impôt|          9,0 |          3,4 |    + 161 % |
+----------------------+--------------+--------------+------------+

Résultats de la période se terminant le 30 septembre 2010 :

+----------------------+-------------+-------------+------------+
|   (millions d'euros) |  30.09.2010 |  30.09.2009 |  D % 10/09 |
+----------------------+-------------+-------------+------------+
|  Chiffre d'affaires  |       800,5 |       614,3 |   + 30,3 % |
+----------------------+-------------+-------------+------------+
|  EBITDA              |       100,9 |        73,5 |   + 37,3 % |
+----------------------+-------------+-------------+------------+
|  EBIT                |        47,3 |        15,1 |  + 213,7 % |
+----------------------+-------------+-------------+------------+
|  Bénéfice avant impôt|        39,4 |         5,3 |  + 639,0 % |
+----------------------+-------------+-------------+------------+
|  Bénéfice après impôt|        27,6 |         3,0 |  + 833,5 % |
+----------------------+-------------+-------------+------------+
|  Endettement net     |       273,6 |       286,4 |    - 4,5 % |
+----------------------+-------------+-------------+------------+

Group's Consolidated Q3 2010 Results

Net revenues in the third quarter of 2010 amounted to E268.9 million, up 28% compared to the same period of 2009. On a like-for-like basis in terms of consolidation area, net revenues increased 27.6%.

The largest increases were seen in the commercial vehicles sector, which rose by 39.5% compared to the third quarter of 2009, and the motorbike sector, which reported a gain of 34.3% owing to the recovery of several major clients and the strong performance of the Indian market. The car sector also performed well, up 27.6% thanks to recoveries of the North American market and the main European customers. After several difficult quarters, positive results were once again reported by the racing (+4.7%) and passive safety (+9.7%) sectors.

In geographical terms, the emerging countries continue developing: China - which benefited from the change in consolidation area - grew by 74.1%, India grew by 72.2%, and Brazil by 19.7%.

The European market showed positive signs, with France up 60.8%, Germany 44.7%, Italy 28.7% and the United Kingdom 18%, owing in part to the comparison with an especially challenging third quarter of 2009.
NAFTA countries also recovered, growing by 8.7% compared to the same period of 2009.

In Q3 2010, the cost of sales and other operating costs amounted to E185.6 million, representing 69.1% of turnover, compared to 65.6% for the same period of the previous year.

Personnel expenses for Q3 were E50.2 million, with a ratio to revenues of 18.7%, with a significant decrease compared to 22.4% in the same period of 2009, which included non-recurring restructuring costs.
At 30 September 2010, the workforce numbered 5,698 (5,603 at 30 June 2010 and 5,417 at 31 December 2009).

EBITDA for the quarter totalled E33.0 million (12.3% of revenues) compared to E25.3 million (12% of revenues) for the third quarter of 2009.
Depreciation and amortisation for the third quarter amounted to E17.5 million compared to E20.3 million for the third quarter of the previous year.

EBIT amounted to E15.4 million (5.7% of revenues) compared to E5.0 million (2.4% of revenues) for the third quarter of 2009, when it included several non-recurring items.

Net interest expenses amounted to E2.8 million (E3.4 million in Q3 2009) and consist of exchange rate losses of E0.5 million (E0.4 million in Q3 2009) and net interest expenses of E2.3 million (E3 million in the third quarter of the previous year). The decrease in net interest expenses resulted both from the lower level of average debt and the reduction in the interest rates applied.

Income before taxes amounted to E12.8 million (E2.1 million in Q3 2009).

Based on tax rates applicable for the year under current tax regulations, estimated taxes amounted to E3.8 million (positive at E1.1 in the third quarter of 2009).
The tax rate for the period was 29.8%.
Therefore net income for the period was E9.0 million.

Net debt at 30 September 2010 amounted to E273.6 million, decreasing E12.8 million (-4.5%) from 30 September 2009.

Results for the period ended 30 September 2010

Consolidated revenues for the first nine months of 2010 amounted to E800.5 million, up 30.3% compared to E614.3 million for the same period of the previous year.
EBITDA amounted to E100.9 million (+37.3%).
Depreciation, amortisation and impairment losses for the period amounted to E53.6 million, down 8.2% compared to the same period of the previous year.
EBIT amounted to E47.3 million, compared to E15.1 million for the first nine months of 2009.
Net income for the first nine months of 2010 amounted to E27.6 million, compared to E3.0 million for the same period of the previous year.

Significant Events After 30 September 2010

- The E50 million bond matured on 26 October and was redeemed by drawing on funds provided by a new medium-/long-term loan of like amount.
- On 22 October 2010, Brembo announced that it signed a lease agreement with a term of 31 December 2011 for a business unit consisting of two companies owned by an important supplier of mechanical parts manufactured using high-tech processes.
The deal, which was a necessary response to the serious financial difficulties in which the leased companies found themselves, has the objective to safeguard the know-how and important technological expertise transferred by Brembo to the suppliers over the years, as well as to ensure the continuity of supply.
Annual rent amounts to E1.8 million. The leased companies' sales, approximately E17 million, will not have effects on the consolidated sales of the Brembo Group, since output is nearly entirely absorbed by the Group.
Within the end of the lease period and based on the results of the financial restructuring of the two leased companies, Brembo might be involved in any subsequent process of acquisition of the business unit.

Outlook

The results for the third quarter of 2010 and the current status of the orders backlog support expectations that the rest of the year may prove in line with the foregoing.
Brembo will continue to take measures aimed at limiting working capital and costs while nonetheless increasing its investment expenditures in order to support the Group's international growth.

Corporate reorganisation of the Brembo Group

Today the Board of Directors also approved the merger of Brembo Performance S.p.A. into Brembo S.p.A.
The merger, along with that of Marchesini S.p.A., announced in October, is part of a larger project of corporate streamlining and reorganisation initiated by the Parent Company with the aim of achieving greater flexibility of internal processes and limiting structural costs.

As part of the project, in Japan Brembo Performance Japan Co. Ltd. was merged into Brembo Japan Co. Ltd., effective 1 January 2011.
In a like manner, Brembo Performance North America Inc. will be merged into Brembo North America Inc., also effective 1 January 2011.

Adjustment of the By-laws Pursuant to Applicable Laws

The Board of Directors of Brembo S.p.A. has resolved to bring the By-laws into compliance with the compulsory provisions of law introduced by Legislative Decrees 27/2010 (implementing of the Directive on the exercise of shareholders' rights in listed companies) and 39/2010 (implementing the Directive on the statutory audit of annual accounts and consolidated accounts).
In accordance with the provisions of the Decrees, the primary changes adopted refer to:
- calling of general shareholders' meetings and information prior to meetings;
- representation at general shareholders' meetings and voting proxies;
- entitlement to participate in general shareholders' meetings and the exercise of voting rights;
- the deadlines for the filing of lists for the appointment of company bodies; and
- the introduction of the notion of the "legal audit of accounts."

The new text of the By-laws will be made available to the public and published in the Corporate Governance section of the Company's website.

Procedure for Related Party Transactions

The Board of Directors of Brembo S.p.A., with prior favourable opinion of the Internal Audit Committee (identified as the body tasked with expressing the opinion, as it is made up only of independent directors) resolved to adopt the procedure regulating related party transactions, in compliance with currently applicable regulations. The procedure, which is aimed at ensuring that transactions with related parties are completely transparent and correct, will be published on the Company's website in the Corporate Governance section.

The manager in charge of the Company's financial reports, Matteo Tiraboschi, 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 unaudited Income Statement and Balance Sheet.

+------------------------+---------------------------+
|   Investor Relations   |   Communications Manager  |
+------------------------+---------------------------+
|  Matteo Tiraboschi     |      Gianfranco De Marchi |
+------------------------+---------------------------+
|  Tel. +39 035 605 2899 |     Tel. +39 035 605 2708 |
+------------------------+---------------------------+
|  e-mail : [email protected] |      Cell. +39 336 634686 |
+------------------------+---------------------------+
|  www.brembo.com        |  e-mail : [email protected] |
+------------------------+---------------------------+

Copyright Hugin

The appendixes relating to the press release are available on:
http://www.hugingroup.com/documents_ir/PJ/CO/2010/171578_88_6U49_Brembo-3Q-10-EN.pdf

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