Italian brake maker Brembo forecasts slower full-year sales growth
12:06 pm Thursday, March 02nd, 2023
MILAN (Reuters) -Brake manufacturer Brembo on Thursday forecast a significant slowdown in its sales growth this year as the automotive market weakens, denting its share price.
The Italian company said the first months of 2023 saw a positive performance in terms of volumes and capacity utilisation and for the full year it expected its revenues to increase in the mid-single digit range.
That compares with 31% growth last year, when Brembo’s revenues totalled 3.629 billion euros ($3.84 billion).
Brembo’s shares, which fell as much as 7.7% after the results were published, were down 3.4% at 1600 GMT.
Executive Chairman Matteo Tiraboschi told Reuters that there were still numerous uncertainties for the year ahead, linked to war, inflation and interest rates.
Tiraboschi said the fourth quarter of 2022 was particularly complicated due to supply chain issues, especially in China.
“The lockdowns that were decided there have clearly wrong-footed our operative processes,” he said.
Brembo’s earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 24% last year to 625.2 million euros, short of the estimate it gave in November of 640 million euros.
The Bergamo-based company, whose EBITDA margin was 17.2% last year, down from 18.1% in 2021, proposed to distribute a dividend of 0.28 euros per share.
($1 = 0.9450 euros)
(Reporting by Romolo Tosiani in Gdansk and Giulio Piovaccari in Milan; Editing by Federico Maccioni and Alexander Smith)
