Brembo Ups Revenue Forecast, Considers M&A Deals and Records Share Surge
Brembo's Financial Performance and Strategic Moves in 2024
MILAN, May 7 (Reuters) - Italian brake maker Brembo on Thursday raised its full-year revenue growth forecast after navigating disruptions linked to the Iran war, sending its shares higher as it posted a small increase in first-quarter core profit.
The company now expects a 3% increase in annual revenue at constant exchange rates, versus a flat outlook issued in March after the U.S. and Israel launched the war on Iran.
Brembo's Milan-listed shares were up 11% at 1530 GMT.
Executive Chairman Matteo Tiraboschi said the initial guidance was "perhaps a bit too prudent".
Supply Chain Resilience and Strategic Response
"We spotted what the consequences for us were and acted immediately, both on the energy and on the material supply chain side," he told Reuters in an interview. "We managed to quickly find alternative suppliers, in particular for some materials coming from that area, such as aluminium".
Sensify Platform and Future Impact
SENSIFY IMPACT FROM 2027
Brembo earlier this week said its intelligent braking platform Sensify was entering large-scale production to supply a leading global manufacturer and that it had recently signed more contracts with new customers.
Expected Results and Financials
Tiraboschi said on Thursday there would be a visible positive impact on results next year as volumes become significant.
In the first quarter, core profit (EBITDA) rose 0.9% to 154.7 million euros ($182.1 million), while revenue fell 2.1% to 937.4 million euros.
M&A Opportunities and Industry Expansion
M&A OPPORTUNITIES
Tiraboschi said Brembo was continually assessing M&A opportunities but had not finalised any deals.
Potential Monroe Acquisition
Last month, Italian daily Il Corriere della Sera said Brembo was considering buying Monroe, the suspension unit of U.S. auto part maker Tenneco, in a deal that could be worth more than 1 billion euros.
"Suspensions is a world we look at, brakes and suspensions work together and close to each other but I do not know Monroe enough. There are many companies in this industry," Tiraboschi said.
Recent Acquisition of Ohlins Racing
Brembo in 2024 bought suspension technology manufacturer Ohlins Racing from Apollo Global Management-backed Tenneco for $405 million.
Exchange Rate Information
($1 = 0.8495 euros)
(Reporting by Romolo Tosiani in Gdansk and Giulio Piovaccari in Milan. Editing by Alvise Armellini and Mark Potter)
