By Alberto Chiumento
(Reuters) – Italian brake maker Brembo on Thursday reported stable preliminary results for 2024, in line with its yearly guidance, despite the difficulties the automotive sector is going through.
Brembo’s stock jumped as much as 5.5% to 9.49 euros after the results. At 1250 GMT, the stock was up 4.8% at 9.42 euro per share.
While the company did not specify the issues it was referring to, European carmakers have warned about the worsening outlook for auto demand and rising costs, as well as pressures from the transition to electric models.
“The share price reaction could reflect some relief after the disappointment of the previous quarter,” ODDO analyst Anthony Dick said. Brembo reported a 14.7% yearly drop in its 9-month net result last quarter.
The company posted a core profit margin of 17.2% for 2024, slightly above the 17% guidance released in November, which had been trimmed from a previous forecast of 17.3%.
Its 2024 revenue came in at 3.84 billion euros ($3.99 billion), broadly in line with both 2023’s result of 3.85 billion euros and the updated November guidance.
“The preliminary results confirm the strength of Brembo’s business model, despite the challenging times for the industry,” Brembo Executive Chairman Matteo Tiraboschi said in a statement.
($1 = 0.9619 euros)
(Reporting by Alberto Chiumento and Giulio Piovaccari ; Editing by Jan Harvey and Mark Porter)
