(Reuters) -Premium brake maker Brembo posted a 12.7% increase in its half-year core earnings, driven by an automotive sector which remains robust at the top end of the market, its chairman told Reuters on Thursday.
The Italian company said its earnings before interest, tax, depreciation and amortisation (EBITDA) amounted to 344 million euros ($383.2 million) in the first six months of the year, supported by all business segments and markets in which it operates.
Executive Chairman Matteo Tiraboschi said Brembo retained solid pricing power, thanks to the high quality and high technological content of its brakes.
“If I look at our business volumes for the coming months I hardly see any signs of a slowdown, at least in our segment of high-end applications,” he said.
“The market remains healthy,” he added.
The chairman, however, said the Chinese market grew by less than forecast in the first half, while the second half of 2023 is expected to be in line with the same period of 2022, “without big accelerations”.
Brembo supplies top automakers including Ferrari and Tesla, as well as several Formula One teams.
The margin on the company’s EBITDA came in at 17.6% in the first half, slightly up from 17.5% a year earlier.
“Our plants are operating smoothly, our supply chain is in good shape,” Tiraboschi said.
Brembo confirmed its forecast for revenue growth of about 10% this year, with percentage margins in line with the previous year.
Brembo’s shareholders this week also approved a plan announced in June to move the company’s legal headquarters to the Netherlands, a move aimed at increasing M&A opportunities.
“It’s a tool we need in our toolbox, but no concrete acquisition deal is now on the table,” Tiraboschi said.
($1 = 0.8977 euros)
(Reporting by Romolo Tosiani and Giulio PiovaccariEditing by Keith Weir)
