Brembo "plays it by ear" with cagey 2024 sales forecast (updated)

Brembo NV

05/03/2024 16:32

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      FY revenue rose 6.1% in 2023 to 3.85 bln euros
    

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      EBITDA up 6.5% last year to 665.8 mln euros
    

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      Margin on FY EBITDA at 17.3% vs 17.2% in 2022
    

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      Proposes dividend of 0.30 euros per share
    

  
 (Recasts after interview with executive chairman)
       MILAN, March 5 (Reuters) - Italy's Brembo  BRBI.MI 
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  .FTITLMS .
    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  603586.SS  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)

 (Reporting by Romolo Tosiani in Gdansk and Giulio Piovaccari in
Milan, Editing by Louise Heavens/Keith Weir)
 ((giulio.piovaccari@thomsonreuters.com))