Brake maker Brembo posted a more than 20% rise in its third-quarter core profit on higher revenues on Tuesday, and announced a widening of its supply agreement with BMW.

Reuters said Brembo expects more than EUR10m in additional annual revenue from the new arrangement with BMW.

It said would supply the entire front braking system rather than just the disc brakes for the automaker's 1 series line.

Brembo, which bought a brake component business from Hayes Lemmerz last week, also forecast a "good" performance from its operations for the whole year, Reuters added.

For the quarter, Brembo said its core profit or earnings before interest, tax, depreciation and amortisation (EBITDA) rose 23.6% to EUR32.2m. Revenue was up 16.8% to EUR216.2m and net profit jumped 86.8% to EUR12.4m.

"Applications for commercial vehicles drove the quarter growth," Brembo said, according to Reuters.