(Adds details, shares)
MILAN May 14 Italian brakes maker Brembo
reported a 74 percent rise in first-quarter net
profit, boosted by higher sales and higher profit margins which
it expects will keep showing year-on-year growth for the
remainder of the year.
The company, which supplies brakes to carmakers including
Ferrari and Porsche, said net profit for
the first three months rose to 35.9 million euros ($49.2
million) from 20.6 million the previous year, while revenues
were up 20 percent at 446.9 million euros.
Shares in the company rose more than 4 percent and were up
3.68 percent at 27.33 euros by 1036 GMT. The stock has risen
nearly 35 percent in the year to date.
"Order book projections confirm that revenues and margins
will show a good growth also in the remainder of the year," the
company said in its statement.
Brembo, which has been involved with Formula One racing
since the mid-1970s, said the quarter had benefited from
positive developments across all market segments and
"Germany and the United States remain the group's top
markets, but we are also seeing renewed activity in those
European markets, including Italy, where we have suffered the
most in the recent past," Chairman Alberto Bombassei said in a
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 12 percent in the first quarter.
Brembo said in March it expects sales to increase by 8-10
percent this year, boosted by strong growth across its markets,
and forecast an EBITDA margin - earnings before interest, tax,
depreciation and amortisation as a percentage of sales - of 14
percent for 2014, up from 13.5 percent last year.
The group's EBITDA margin stood at 15.5 percent in the first
quarter, but the company said that during the January to March
period the product mix had been particularly positive and
supported by healthy sales to customers in the higher-margin
($1 = 0.7296 Euros)
(Reporting by Agnieszka Flak; Editing by Elaine Hardcastle)