* Company forecasts 8-10 pct rise in 2014 revenue
* Shares close up 10.55 pct
* 2013 net profit up 14.4 pct, revenues up 12.8 pct
* Analyst says FY results beat forecast, optimistic for 2014
(Recasts with deputy chairman comments, adds details, updates
By Agnieszka Flak and Stefano Rebaudo
MILAN, March 6 Italian brakes maker Brembo
expects sales to increase by 8-10 percent this year,
boosted by strong growth across its markets, a senior executive
said on Thursday, building on a strong 2013 that sent its shares
to a record high.
Even in Italy, among European countries most hit by a
six-year slump in auto sales that only now show modest signs of
recovery, Brembo's sales grew by 2 percent last year, primarily
because of its focus on the premium market.
The company supplies brakes to carmakers including Ferrari
and Porsche, and has also been involved with Formula One racing
since the mid-1970s.
"All of the areas where Brembo operates are going well, so I
expect the sales growth to be fairly homogenous across the world
(this year). We expect to be able to grow our sales in a high
single-digit figure, between 8 and 10 percent," Deputy Chairman
Matteo Tiraboschi said, adding that the company expects an
EBITDA margin of 14 percent this year, up from 13.5 percent in
A jump in sales in most western European markets, North
America and China lifted Brembo's full-year net profit by 14.4
percent to 89 million euros. Total revenues last year increased
by 12.8 percent to 1.57 billion euros.
The stock rose as much as 12 percent to a record 24.84
euros. It finished the day up 10.55 percent, outperforming a 0.4
percent rise in Milan's all-share index.
"I liked everything about these results, their performance
was definitely above expectations," one Milan-based analyst
said. "Now their guidance of an EBITDA margin of 14 percent for
this year seems excessively conservative."
Brembo said that it expects 2014 capital expenditure to be
between 130 million euros and 140 million euros ($178-192
million), broadly in line with last year.
The group's board is to ask shareholders for a mandate to
pursue a capital increase, excluding option rights, for up to 10
percent of its share capital to raise funds for acquisitions if
and when opportunities arise.
Tiraboschi emphasised, however, that no deals are in its
sights at the moment.
In terms of organic growth, Brembo is targeting Asia, and
China in particular, where it hopes to increase production
capacity. Sales in that country are expected to continue growing
"in line with the trend of recent years", Tiraboschi said.
Chinese sales grew 36 percent last year.
While Germany and North America made up nearly half of
Brembo's sales last year, in the long term the company hopes for
an even spread between Asia, Europe and the Americas.
It proposed paying a gross dividend of 0.50 euros per share.
($1 = 0.7278 euros)
(Editing by Jane Merriman and David Goodman)