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Brembo strengthens its stake in Pirelli by reaching the 5% threshold. In March the company had purchased 2.2% directly and indirectly.

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(IMAGOECONOMICA)

Brembo strengthens its stake in Pirelli by reaching the 5% threshold. In March the company had purchased 2.2% directly and indirectly.

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Brembo strengthens its stake in Pirelli by reaching the 5% threshold. This was announced by a note from the company which in March had purchased 2.2% directly and indirectly. “By adopting a non-speculative and long-term approach, Brembo has independently decided to invest in Pirelli, a company that for history, brand, leadership and propensity for innovation represents, like Brembo, a particularly significant Italian excellence in the sector of reference – reports the note – Brembo, both directly and through the parent company Nuova FourB, has completed the purchase process, reaching 4.99% of Pirelli spa’s share capital “.

The impact of Covid-19 on the accounts

Brembo reported net profits of 20 million euros in the first half of 2020, down 83.8% from the same period last year, while revenues fell 28% to 951.1 million. The EBITDA contracted by 47% to 143.3 million, the EBIT of 77.8% to 38.8 million. At 30 June the group’s debt increased by 147 million compared to the end of March to 597 million.

Geographically, the performance of the various areas was influenced by the “timing of the spread of the pandemic from Covid-19 and by the progressive adoption of containment measures by the various government authorities”, explains Brembo. In Italy sales dropped by 25.6%, in Germany by 32.5%, in France by 22.5% and in the United Kingdom by 40.5%. In the Asian area, sales in India and Japan decreased respectively by 43.4% and 12.1%, while in China they decreased by a modest 2.4%, thanks to a good market recovery in the second quarter, which saw seen revenues up 23.2%. The North American market (United States, Mexico and Canada) is down by 34.8%, while the South American market (Brazil and Argentina) records a decrease of 43.9%.

The prospects

«The results of the first half of 2020 show how, in such a challenging context, Brembo has shown significant resilience, preserving the quality of margins and financial solidity – is the comment of President Alberto Bombassei – We look to the future with confidence, being able to count on solid foundations and on an ambitious long-term development program that will allow us to start growing again ».