Brembo performance remains strong in the face of Coronavirus pandemic
Thursday, July 30, 2020
Braking specialist Brembo has announced financial results for the first half of 2020, which reflect the initial impact of difficult economic conditions due to the global COVID-19 outbreak. While revenues were down on 2019, returns and investments remained reasonably strong.
In the first half of 2020, net consolidated revenues amounted to €951.1 million, down 28.2% compared to the first half of the previous year. As expected, H1 2020 results were severely impacted by the gradual spread at global level of the COVID-19 pandemic, which particularly penalised the second quarter of the year.
At geographical level, the performance of the various markets reflected the COVID-19 pandemic’s different timing of spread and the gradual adoption of containment measures by governments. Sales dropped by 25.6% in Italy, by 32.5% in Germany, by 22.5% in France and by 40.5% in the United Kingdom. In Asia, sales in India and Japan decreased by 43.4% and 12.1%, respectively, whereas in China sales declined by just 2.4%, thanks to a good recovery of the market in the second quarter, up 23.2%. The North American market (USA, Mexico and Canada) shrank by 34.8% and the South American market (Brazil and Argentina) by 43.9%.
Over Brembo reported a net profit of €20.0 million.
Brembo Chairman Alberto Bombassei stated, “The results for the first half of 2020 approved by the Board of Directors today underscore how Brembo showed considerable resilience in such a challenging environment, protecting its margin levels and financial solidity. The Company believes it is well-positioned for the market evolution, thanks to its commitment towards innovation, digitalisation and environmental protection, despite the continuing situation of uncertainty of the automotive industry, further exacerbated by the crisis that has impacted the global economy. We look to the future with confidence, relying on our solid fundamentals and an ambitious development programme focused on the long term, which will allow us to resume our growth.”