MILAN, - Premium brake systems maker Brembo (BRBI.MI: Quote, Profile, Research) posted a 19.6 percent rise in first-quarter core profit on a sales boost from two acquisitions including a U.S. unit of Hayes Lemmerz International Inc (HAYZ.O: Quote, Profile, Research). Margins at the Italian group -- a figure closely watched by analysts -- remained flat at 14.6 percent.
Earnings before interest, tax, depreciation and amortisation (EBITDA) rose to 40 million euros ($61.85 million) and net profit went up 24.7 percent to 15.7 million euros.
Revenues rose 19.1 percent to 273.2 million euros. Excluding contributions from the acquisitions, they rose 10.4 percent.
Like most other players in the automotive industry, Brembo has had to contend with the rising cost of energy and raw materials.
"After the strong volatility recorded in the first quarter, starting from April the raw material and energy markets registered another sharp acceleration," it said in Wednesday's statement.
But the maker of brake systems brands including BMW (BMWG.DE: Quote, Profile, Research) said its order book was strong, allowing it to forecast more growth for the year.
It said it was investing about 45 million euros to double the capacity to make discs at a plant in Poland.
Its stock nosed up 0.9 percent to 8.40 euros.
In November, Brembo bought the car brake component business of Hayes Lemmerz for $58 million. It later bought 70 percent of Sabelt, an Italian maker of seat belts.
Brembo said the strongest revenue growth came from commercial vehicles and motorcycles. "Most of the growth arises from the Nafta Area thanks to the Harley Davidson (HOG.N: Quote, Profile, Research) platform and to the recently acquired company sales," it said. (Reporting by Gilles Castonguay; Editing by Louise Ireland)
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