Brembo "plays it by ear" with cagey 2024 sales forecast
Reuters
Published Mar 05, 2024 17:18
MILAN (Reuters) - Italy's Brembo offered a cautious outlook on Tuesday, guiding for mid-single digit revenue growth this year, in line with its performance for 2023, as geopolitical and commercial tensions allow limited visibility on future business prospects.
Executive Chairman Matteo Tiraboschi said the premium brakes maker saw positive momentum in all markets where it operates.
"However, we've seen how all markets can be unsettled overnight. More and more we are playing it by ear," he told Reuters in an interview after the company posted 2023 results, which showed a 6.1% revenue growth on the full-year, to 3.85 billion euros ($4.19 billion).
Shares in the Bergamo-based company were down 0.4% by 1630 GMT, slightly underperforming a 0.6% rise on Italy's main stock market index.
Brembo's core profit (EBITDA) rose 6.5% last year to 665.8 million euros. EBITDA margin stood at 17.3%, versus 17.2% in 2022.
Last year's results broadly matched the forecasts earlier provided by the company.
Tiraboschi said Brembo was positive on China too, although revenue there fell 4.3% last year, due to exchange rates.
"In China we've got historic clients among U.S. and European automakers, but our market share is also growing a lot among Chinese manufacturers, those more technologically advanced and pushing towards electrification," Tiraboschi said.
Net of exchange rate fluctuations, Brembo's revenues in China grew almost 3% last year.
China is the third-largest market for Brembo, after U.S. and Germany. Its operations there include four production sites and a joint venture with local partner Gold Phoenix to make brake pads.
Brembo, which is scheduled to complete the transfer of its legal headquarters to the Netherlands from Italy next month, on Tuesday proposed to pay a 0.30 euro per share on its 2023 results. ($1 = 0.9199 euros)
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Written By: Reuters
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