Brembo has unveiled first half net profit up 44% to EUR35.6m (US$43.9m) and although revenue increased 11% to EUR702.6m, the company is keenly eyeing the economic crisis in southern Europe.

All sectors reported improved performance, says Brembo, compared to the first half of 2011, with the percentage growth high for the car applications sector (+13.1%), followed
by motorbike applications (+8.5%), racing sector (+7.9%) and commercial vehicles

"Overall, we are satisfied with the results for the first half of the year, both in terms of growth and profitability," said Brembo chairman, Alberto Bombassei. "The performance of our order backlog allows us to look towards the coming months with confidence.

"However, we will attentively observe the evolution of the economic and financial crisis, which is impacting the automotive markets in southern Europe."

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Net consolidated revenues amounted to EUR702.6m, up 11% compared to the first half of the previous year. On a like-for-like consolidation basis (i.e., excluding the effect of Brembo Argentina, acquired effective August 2011), revenues would have increased by 9.7%. 

All sectors reported improved performance compared to the first half of 2011: the percentage growth was particularly high for the car applications sector (+13.1%), followed by motorbike applications (+8.5%), racing sector (+7.9%) and commercial vehicles (+5.3%). 

At geographical level, Germany continues to be the Brembo Group’s main market, accounting for 23.2% of total sales, and recorded a 19.3% increase in the six months compared to the same period of the previous year. Within the European market, the United Kingdom reported the best growth result (+35.5%); France also closed the half year positively (+7.1%), whilst sales in Italy, which is still the third largest market for Brembo (16.3% of sales), decreased by 5.6%.

North America (USA, Canada, Mexico), the second market of reference for Brembo (21% of revenues) continued its healthy growth and closed the period with an increase of 29.2%. 

Brazil decreased by 12.9%. In the Far East, India reported an increase in sales by +1.4%, which however, net of the exchange differences, would have increased by 15%. China recovered compared to the -20.7% figure recorded in the first quarter of 2012, reporting a figure of -5.2%, due to the disposal of product stocks, existing at the date the foundry was purchased, and consisting of products not included in Brembo’s portfolio. The Japanese market is healthy, closing at +13.5% compared to the first half of 2011.

In the reporting period,  the cost of sales and other  operating costs amounted to EUR473.4m, with a ratio of 67.4% to revenues, essentially in line compared to H1 2011 (67.2%). 

In H1 2012, personnel costs amounted to EUR140.8m, with a ratio of 20% to revenues, in line compared to H1 2011.

EBITDA amounted to EUR88.4m (12.6% of revenues), up 9% compared to the same period of the previous year. 

EBIT amounted to EUR49.3m (7% of revenues), up 14.9% compared to H1 2011.

Net interest expense amounted to EUR4.2m (EUR4.5m in H1 2011) and consisted of exchange gains of EUR1.4m (compared to exchange loss of EUR0.1m in H1 2011) and net interest expense of EUR5.7m (EUR4.4m in the same period of the previous year). 

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