Brembo posts strong Q1 on robust recovery across markets

Reuters2021-05-10

May 10 (Reuters) - Italian premium brakes maker Brembo

on Monday posted a 33% rise in first-quarter core earnings, helped by a robust recovery across its businesses and markets where it operates, pushing shares up more than 3%.

The company, which makes brakes for automakers including Ferrari and Tesla as well as several Formula One teams, said earnings before interests, taxes, depreciation and amortization (EBITDA) rose to 135.6 million euros ($164.89 million) in the January-March period, with profit margins increasing to 20.1%, up from 17.7% a year ago.

Revenues rose 17.2% to 675.1 million euros, reaching record levels for the first quarter and up 1.2% on the same period in 2019, before the outbreak of the coronavirus virus hit the automotive industry.

Brembo said its "order levels confirm that the year has begun on a positive note", adding the impact of the chip shortage on its clients' supply chain was difficult to estimate at present.

Shares rose more than 3% after the results and were up 1.4% by 1007 GMT, compared with a 0.3% rise in Milan's All-Share index .

($1 = 0.8224 euros)

(Reporting by Federico Maccioni, editing by Agnieszka Flak)

((Federico.Maccioni@thomsonreuters.com; +48 58 7696595))

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