Italian premium brakes maker Brembo stated on Thursday core earnings and margins have been hit within the fourth quarter by larger manufacturing prices and the worldwide chip scarcity
View PhotosThe emblem of Brembo is seen at its headquarters in Bergamo, Italy
(Reuters) – Italian premium brakes maker Brembo stated on Thursday core earnings and margins have been hit within the fourth quarter by larger manufacturing prices and the worldwide chip scarcity, whereas the disaster in Ukraine made it unimaginable to difficulty a forecast for the approaching months. Brembo Executive Chairman Matteo Tiraboschi informed Reuters the corporate had a constructive begin in 2022, with a “robust” efficiency in January and February. But he stated that the Russian invasion of Ukraine was placing a “huge question mark” on the enterprise outlook.
“Should the current geopolitical crisis last for weeks or, worse, for months, that would be a huge problem,” he stated.
The firm, with operations in 15 nations together with Russia, stated in an announcement the direct affect of the Russia-Ukraine disaster on the group was restricted because it has no manufacturing websites within the space, however it was nonetheless intently monitoring the affect on commodity provides and manufacturing prices. Brembo, which makes brakes for a number of Formula One and MotoGP groups in addition to premium carmakers resembling Tesla and Ferrari, stated earnings earlier than curiosity, taxes, depreciation and amortization (EBITDA) stood at 121 million euros ($134.14 million) within the October-December interval, with its revenue margin falling to 16.4% from 18.7%.
Tiraboschi stated uncooked supplies costs and vitality and logistics prices had spiked particularly within the ultimate a part of 2021, and that Brembo’s listed contracts have been providing safety solely with a three-to-six-month lag. “We’re in a pursuit situation and this weighed on our margins”, he stated.
Tiraboschi added that the high-end section of the automotive market, the place Brembo is targeted, was additionally affected by a worldwide semiconductor scarcity within the fourth quarter, after it was spared within the earlier a part of the yr.
Brembo shares fell as a lot as 6.5% to their lowest worth since November 2020 after the discharge of its outcomes. By 1535 GMT they have been down 2.3%. Fourth-quarter gross sales rose 13.4% to 735.8 million euros, pushed by development throughout all markets.
($1 = 0.9020 euros)
(Reporting by Agnese Stracquadanio and Giulio Piovaccari; Editing by Paul Simao)
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With inputs from NDTV
