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Brembo's Board of Directors approved the results for the third quarter of 2009

^{Published on 2009-11-12 05:57:28 - Market Wire}
 

STEZZANO, ITALY--(Marketwire - November 12, 2009) - Brembo's Board of Directors approved the results for the third quarter of 2009:

- Revenues amounted to EUR 210.1 million (-19.8% compared to Q3 2008)

- EBITDA amounted to EUR 27.2 million (13% of sales);

- EBIT amounted to EUR 6.9 million (3.3% of sales);

- Net income was EUR 4.1 million.

Net financial debt decreased by 20.3% compared to 30 September 2008.

 +--------------+--------+--------+---------+ | (€ million) |Q3 2009 |Q3 2008 |D% 09/08 | +--------------+--------+--------+---------+ |Revenues | 210.1 | 262.0 | -19.8% | +--------------+--------+--------+---------+ |EBITDA | 27.2 | 34.1 | -20.0% | +--------------+--------+--------+---------+ |EBIT | 6.9 | 18.1 | -61.7% | +--------------+--------+--------+---------+ |Pretax profit | 2.8 | 13.1 | -79.0% | +--------------+--------+--------+---------+ |Net profit | 4.1 | 12.2 | - 66.5% | +--------------+--------+--------+---------+ +--------------+--------+--------+---------+ 

 +-------------------+-----------+-----------+---------+ | (€ million) |30.09.2009 |30.09.2008 |D% 09/08 | +-------------------+-----------+-----------+---------+ |Revenues | 614.3 | 830.0 | -26.0% | +-------------------+-----------+-----------+---------+ |EBITDA | 75.5 | 114.7 | -34.2% | +-------------------+-----------+-----------+---------+ |EBIT | 17.0 | 69.7 | -75.5% | +-------------------+-----------+-----------+---------+ |Pretax profit | 5.7 | 56.8 | -90.0% | +-------------------+-----------+-----------+---------+ |Net profit | 3.3 | 42.8 | -92.2% | +-------------------+-----------+-----------+---------+ |Net financial debt | 286.4 | 359.3 | -20.3% | +-------------------+-----------+-----------+---------+ +-------------------+-----------+-----------+---------+ 

The third quarter witnessed the first modest signs of a recovery, following on the significant decline in demand reported in the first six months of 2009.

Net revenues for the third quarter of 2009 amounted to EUR 210.1 million, down 19.8% compared to the same period of 2008, but marking a clear recovery compared to the first half of this year, when the Group recorded a 28.8% reduction in sales.

On a like-for-like basis in terms of consolidation area, net sales decreased by 21.8%.

The lower reduction in sales referred mainly to applications for commercial vehicles, which in the third quarter decreased by 10.2% compared to the same period of 2008 (in H1, the decline was 48.2%) and car applications, which decreased 19.5% in the third quarter, compared to a 28% drop in H1 2009.

Motorbike applications and the racing segment further decreased by 18.1% and 45.5%, respectively.

Breaking down performance by geographical area, growth in Asia (+39.8%) and in Brazil (+5.4%) which benefited from the change in consolidation area, marked a sharp contrast to the trend in the rest of the world.

The decline of the NAFTA area, which reported a decrease of 5.6% over the quarter, compared to 22.1% in H1 2009, appears to have come to a halt.

In Europe, both Germany (-25.2% compared to -34.7% in H1 2009) and the United Kingdom (-25.4% compared to -35.8%) showed improvement. The French (-35%) and Italian (-33.6%) markets were both substantially stable, reporting decreases in line with the first six months of the year.

In Q3 2009, the cost of sales and other operating costs amounted to EUR 135.9 million, representing 64.7% of turnover, compared to 68.5% for the same period in the previous year.

Personnel expenses amounted to EUR 47 million in Q3 2009, with a ratio of 22.4% to sales, increasing over the same period of the previous year (18.5%) due to several non-recurring expenses incurred for reorganisation initiatives.

At 30 September 2009, the workforce numbered 5,402 (5,847 at 31 December 2008 and 6,000 at 30 September 2008). On a like-for-like basis in terms of consolidation area, Group personnel decreased 6.5% compared to 31 December 2008 and 12.8% compared to 30 September 2008.

EBITDA for the quarter amounted to EUR 27.2 million compared to EUR 34.1 million for the third quarter of 2008. The ratio to sales remained unaltered at 13%.

EBIT amounted to EUR 6.9 million (3.3% of revenues), compared to EUR 18.1 million (6.9% of sales) for Q3 2008, after depreciation, amortisation and impairment losses of EUR 20.3 million, compared to EUR 15.9 million for the third quarter of the previous year.

The increase in the item "Depreciation, amortisation and impairment losses" is mainly due to impairment losses recognised as a result of the production reorganisation carried out in Mexican plants.

Net interest expenses amounted to EUR 3.4 million (EUR 5.1 million in Q3 2008) and consist of exchange rate losses of EUR 0.4 million (EUR 0.8 million in Q3 2008) and net interest expenses of EUR 3 million (EUR 4.3 million in Q3 2008). The decrease in net interest expenses resulted from a lower level of average debt and a reduction in the interest rates applied.

The company reported an income before taxes of EUR 2.8 million (EUR 13.1 million for Q3 2008).

Based on tax rates applicable for the year under current tax regulations, estimated taxes were positive at EUR 1.1 million (EUR -1.5 million in Q3 2008). In the third quarter of 2009, tax allocation was positive as the Group companies that posted positive results for the quarter benefit from tax reliefs and other companies, which reported losses, recognized deferred tax assets.

The period ended with a net income of EUR 4.1 million.

Net debt decreased to EUR 286.4 million at 30 September 2009, down by EUR 72,9 million from 30 September 2008 (EUR 359.3 million) and by EUR 17 million compared to EUR 303.4 million at 30 June 2009.

The improvement in net financial position is the result of the steps taken to reduce inventories and receivables and the downsizing of the investment policy in order to react to declining demand.

Results of the Period Ended 30 September 2009

Consolidated revenues for the first nine months of 2009 amounted to EUR 614.3 million, down 26% compared to EUR 830 million for the same period of the previous year.

EBITDA was EUR 75.5 million (-34.2%).

Depreciation and amortisation for the period totalled EUR 58.4 million, up 29.7% on the same period of the previous year.

EBIT was EUR 17 million, compared to EUR 69.7 million for the first nine months of 2008. The period ended with an income of EUR 3.3 million. Outlook

During the first nine months of the year, Brembo continued with the measures aimed at containing costs initiated in late 2008 in order to deal with the extreme uncertainty in the economic scenario, especially the automotive industry.

The company expects that its performance in the remainder of the year will be in line with that achieved during the third quarter.

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.

This information is provided by HUGIN