(Reuters) -Italian premium brake maker Brembo posted on Thursday a 5% yearly increase in its core profit in the first-quarter, as revenues in the period topped the one billion euro quarterly threshold for the first time.

The group however took a more cautious stance on its full-year turnover “in an increasingly complex market context”, sending its shares down.

Brembo on Thursday guided for a “moderate” revenue increase in 2024, versus a previous forecast for mid-single digit growth.

Executive Chairman Matteo Tiraboschi told Reuters the company found it reasonable to take a more prudent approach, despite having full order books.

“We’ve seen that our customers posted results showing declines, even marked ones, the market is contracting,” he said, adding macroeconomic weakness and tensions on global trade were also reasons to be cautious.

By 1505 GMT Brembo shares were down 1.6%.

Brembo’s clients include automakers such as Tesla, BMW, Mercedes, Maserati, Alfa Romeo as well as Chinese EV giant BYD.

In the January-March period, Brembo’s earnings before interest, tax, depreciation and amortisation (EBITDA) amounted to 177 million euros ($190 million).

The EBITDA margin grew to 17.6% form 17.5% a year earlier.

The company on Thursday also guided for a full-year EBITDA margin in line with that of 2023, when it came in at 17.3%. This suggests the margin will slightly contract during 2024.

“We cannot rule out swings in this context, so again, we prefer being prudent,” Tiraboschi said.

Revenue rose 4.4% to 1.005 billion euros, with the motorbike applications business and Chinese market returning to growth after two quarters down.

Brembo, which is controlled by the Bombassei family with a stake of around 70%, last month completed a process to move its legal headquarters to the Netherlands.

($1 = 0.9295 euros)

(Reporting by Alessandro Parodi in Gdansk and Giulio Piovaccari in Milan; Editing by Tomasz Janowski/Keith Weir)

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