Brembo's 3Q revenues, income show improvement year to year
Brembo SpA posted net income of 12.3 million euros on revenues of 262 million euros for its third quarter ended Sept. 30, 2008. That compares to income of 12.4 million euros on sales of 216.2 million euros for the same period last year.
Based on the Sept. 30, 2008, exchange rate, Brembo recorded 3Q net profit of $17.3 million on sales of $304.4 million. The company's income-to-sales ratio was 4.7%.
Through three quarters, Brembo's net income of 43.1 million euros was up 9.5% compared to the first nine months of 2007. It's net sales of 830 million euros was up 23.4%.
"September marked the beginning of a significant market slowdown, as a result of the climate of uncertainty brought on by the collapse of major financial institutions. This generated a higher selectivity in granting access to credit and, consequently, purchases of durable consumer goods under instalment plans or leases declined sharply," says the company.
"These payment methods are considerable in the car and light commercial vehicle segments, and automakers reacted to the market scenario by planning fourth-quarter halts in production and extending the year-end holiday season shutdown.
"Brembo reacted to this situation of uncertainty by adapting its production levels to the expected slowdown in demand and implementing measures to control costs and working capital and curtailing or postponing investment plans. The goal of these initiatives is to limit the impact on the group's margins and financial position in the fourth quarter of 2008."