Brembo sees revenue, net profit growth in 2011
The Board of Directors of Brembo, chaired by Alberto Bombassei, has approved the group's financial results for 2011, showing net consolidated revenues up by 16.7 percent compared to the previous year.
Like this article? Sign up to receive our weekly news blasts here.All sectors contributed to the growth of the group, particularly that of applications for commercial vehicles, which grew 24.4 percent and the racing segment, which grew 23.8 percent. The motorbike sector rose by 18.8 percent, the car sector grew 14.6 percent and the passive safety sector marked a 2.6 percent increase.
"Internationalisation, innovation and the courage to invest to do business. These are the reasons for the group's rapid growth in 2011, and they are also the company's guidelines for its future development. The order backlog for the first half of the year leads us to look toward 2012 with confidence," says Bombassei.
At geographical level, the sharp growth of European countries, Asia and North America continued. Germany, in particular, increased by 15.6 percent compared to 2010 and confirmed its position as the Group's number-one market — accounting for 21.8% of revenues.
Sales performed well also in the United Kingdom, up 38.1 percent, France (+33.8 percent) and Italy (+12.7 percent), which remains the group’s third reference market after North America. The latter (including the revenues of the United States, Canada and Mexico) rose by 15.5 percent compared to 2010.
Sales in Brazil were more or less stable, following several periods of double-digit growth, reporting a 1 percent year-on-year change. The Indian market raced on, closing the year at +25.7 percent along with China, which grew 11.6 percent. The Japanese market grew 5.1 percent.
In fiscal year (FY) 2011, the cost of sales and other operating costs amounted to €851.4 million ($1,132 million), with a ratio of 67.9 percent to revenues, substantially in line with the figure recorded in the previous year (68 percent).
Personnel costs in 2011 amounted to €254.3 million ($338 million) or 20.3 percent of revenues, slightly increasing compared to the previous year (19.8 percent). On Dec. 31, 2011, Brembo’s workforce was 6,735, up by 831 from 5,904 in the previous year, due to the new industrial plants launched.
EBITDA amounted to €148.8 million ($197 million) (11.9 percent of revenues), up by 14 percent compared to the previous year.
EBIT amounted to € 73.3 million ($97 million) (5.8 percent of revenues), up by 30.1 percent compared to 2010.
Net interest expenses were €17.2 million ($23 million) — (€8.9 million ($11 million) in 2010 — and consisted of exchange losses of €6.3 million ($8 million), compared to exchange gains of €0.4 million ($500,000) in 2010, and net interest expenses of €10.8 million ($14 million). It should be noted that the exchange losses are mere accounting items generated by the translation in Euro of funding denominated in foreign currencies.
Pre-tax profit amounted to €54.7 million ($72 million). It was €45.4 million ($60 million) in 2010.
The year ended with a net profit of €42.9 million ($57 million), up 33.1 percent compared to €32.3 million ($43 million) for the previous year.
Outlook
Projections confirm that the growth of revenues in all sectors will continue in 2012. When the new production plants are in full operation, they will also contribute to margins as from the second half of the year, once the investments to complete the plants are at an end.
