By Romolo Tosiani
(Reuters) -Italian brake maker Brembo on Tuesday posted a 14.4% drop in its first-half core profit (EBITDA) to 300.9 million euros ($348.1 million), hit by headwinds in the European and North American automotive sectors.
The premium brake maker’s first half net profit fell to 97.9 million euros, down 37.4% from a year earlier, while its revenue totalled 1.88 billion euros, 6.2% lower than a year before.
Asked about this week’s EU-US trade deal, Brembo’s Executive Chairman Matteo Tiraboschi told Reuters: “15% is certainly, at least for the automotive side, an improvement from 25.5%, but it is still a loss.”
Although Tiraboschi said the company was not directly impacted by the tariffs, he flagged a possible indirect impact due to the possibility that European carmakers “may sell fewer appliances on the U.S. market.”
Milan-listed shares in the brake maker fell as much as 10% after the results were published. By 1440 GMT the stock traded down around 5%.
Tiraboschi cited a volatile geopolitical environment and problems in the automotive market in Europe and North America.
Brembo’s clients include premium car brands such as Porsche, Audi, BMW and Lamborghini.
European carmakers are struggling to navigate trade tensions and competition from Chinese auto makers which have taking a record market share and squeezed several established brands.
However, the Bergamo-based firm confirmed its full-year guidance for revenue in line with 2024, and an EBITDA margin above 16%, assuming a more stable geopolitical context in the second half of the year.
($1 = 0.8645 euros)
(Reporting by Romolo Tosiani in Gdansk; Editing by Matt Scuffham)
