STEZZANO, Italy — Brembo has reported net sales for the third quarter ended Sept. 30. This amounted to $332 million, up 21.2 percent compared to the same period of 2007. Comparison of the two financial periods is not homogeneous due to the acquisition of Hayes Lemmerz, which contributed approximately $27 million to the increase in sales, almost all in the United States and on car applications; as well as the acquisition of Sabelt in Italy, which contributed $5.8 million; and the acquisition of NYABS in China, which contributed $5 million.
On a like-for-like basis, net sales increased 7.5 percent, also supported by the recovery of the raw material and energy costs on sales prices.
The company said its main growth drivers were car applications (+26.1 percent), thanks to the recent acquisitions, although the sales of original equipment discs showed signs of slowdown, according to Brembo. Commercial vehicles applications growth rate in the third quarter of 2008 was significantly lower (+5 percent) compared to the long trend of expansion observed in prior periods.
The racing segment posted a 24.3 percent increase in sales; and sales of motorbike applications, which saw strong increases in the first half of the year due to a growth in market share, were flat in the third quarter, in line with market trends.
In geographical terms, development was achieved mainly in NAFTA countries (+66.4 percent). Germany and Italy remain the group’s primary markets and represented 43.8 percent of Brembo’s total turnover.
During the quarter, the cost of sales and other net operating costs amount to $227.8 million, with a ratio of 68.5 percent to sales, compared to 67 percent for the same period in the previous year. The increase in the ratio is due to a mix of lower value-added applications and higher raw materials costs. Although the cost increases were almost completely absorbed through higher sale prices, they nevertheless diluted margins.
EBITA increased 5.9 percent: in the quarter it was $43.2 million (13 percent of sales) compared to $40.9 million in the third quarter of 2007 (14.9 percent of sales).
