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22nd March 2005 - Brembo Brakes Board of Directors Approved the 2004 Draft Annual Report A dividend of 0.18 (+38%) and the cancellation of own shares currently in portfolio will be proposed to the General Meeting. Expected growth in 2005, even though with a slow start.
Group Results Net consolidated revenues amount to 678.2 million, up 7% over previous year. Gross operating income (EBITDA) is 101.2 million, or 14.9% of sales. Net operating income (EBIT) is 58.4 million, or 8.6% of sales, after deducting 42.9 million for depreciations and amortizations. These are down 7.7% over previous year due to the change in the depreciation policy implemented in 4Q 2004, as widely explained upon release of the relevant quarterly results. After deducting taxes for 22.7 million, net profit is 34.3 million (up 17.2%) over previous year. Compared to the preliminary data released in February ( 33.4 million), the increase is due to the recognition of a deferred tax asset. Brembo S.p.a. Results The parent company reported gross sales for 489.7 million, down 2.6% over previous year. Gross operating income is 53.6 million, down 20.3%; net operating income amounts to 28.8 million, -23.6% over previous year. This is the result of the progressive internationalization of the Group activity, steadily increasing sales and margins generated by foreign subsidiaries, coherently with the evolution of our customers production in Europe and outside Europe. The non-recurring income, 19 million, includes the adjustments made to accomplish the new Corporate Laws, which imply to reverse those registrations booked exclusively on a fiscal principle basis. It comprises 5.5 million for residual accelerated depreciations, booked as of 31.12.2003, including 2 million of tax effect, and 12.9 million for participation write-downs recorded in previous years. By consequence, the net profit amounts to 30.9 million. The Board resolved to submit to the AGM a gross dividend of 0.18 per share (integrating the distributable profit by partially using the extraordinary reserve); it will be paid starting from May 12th 2005, with the coupon no. 13. The remaining part of the profit will be attributed as follows: 1.5 million to the legal reserve, 0.5 million to non-distributable reserve, the rest to the extraordinary reserve. General Meeting call Brembo General Meeting is called on April 29th at 11.00 am, at Companys Headquarters. The Ordinary Meeting will be asked to approve the 2004 Annual Report, to reappoint the Board of Directors and the Statutory Auditors for the next three years and to renew the authorization to buy and sell own shares. The Extraordinary Meeting will be submitted a share capital reduction from the current 36,317,034 to 34,727,914, by canceling the 3,056,000 own shares in portfolio. This proposal aims at rationalizing the balance sheet structure, by reducing the shareholders funds, as well as at maximizing the return on investment for all shareholders, by increasing the dividend yield. Transition to International Accounting Standards IAS / IFRS With the purpose of defining the necessary procedures to implement the application of the new international accounting standard IAS/IFRS, Brembo created a work group, which, supported by technical advisors, will evaluate the impact of the new principles on the Company financials. Currently the areas mainly impacted by the new accounting standards are supposed to be: employees benefits (IAS 19), goodwill treatment (IAS 36), intangible assets and R&D expenses (IAS 38); their impact is still being quantified, though. The application of IAS to interim reports is planned starting from the 2005 Six-Monthly Report. Foreseeable evolution Evolution of 2005 sales, in the different business segments, is expected to be similar to what registered in 2004, even though with a rather slow start of revenues in the first months of this year. Source: Brembo Brakes Press Release |