Brembo S.p.A. Business Report FY ended Dec. 2013
|(in million EUR)|
|FY ended Dec. 31, 2013||FY ended Dec. 31, 2012||Rate of change
|Passenger Car Applications|
|Commercial Vehicle Applications|
1) Passenger Car Applications
-The Company's net sales for passenger car applications increased 16.9% in 2013 to EUR 1,097.8 million. Despite declines in Western Europe and Russia, increased vehicle sales in China and the United States led to improved sales figures in 2013.
2) Commercial Vehicle Applications
-In 2013, the Company reported a 4.0% increase in net sales for commercial vehicle applications to EUR 191.8 million. A slight increase in sales in the European market was caused by increased demand in Euro 5 vehicles ahead of the introduction of new emission standards.
Acquisitions-The Company has full ownership of Brembo Nanjing Brake Systems Co. Ltd. as a result of acquiring the remaining 30% stake from Chinese partner Donghua Automotive Industrial Co. Ltd., for a total consideration of CNY 90 million (about EUR 11 million). The subsidiary specializes in the processing and coating of cast-iron discs and aluminum fixed calipers for cars and commercial vehicles. Brembo Nanjing Brake Systems is part of the Nanjing industrial hub opened by the Company in 2012. The complete acquisition of Brembo Nanjing Brake Systems Co. Ltd. is the Company's last step towards the full integration of the hub, which consists of the recently built foundry, the discs and braking systems production lines, and the R&D center. (From a press release on August 8, 2013)
Contract-The Company announced that the Chevrolet Camaro Z/28 which debuted at the New York International Auto Show was equipped with the Company's carbon ceramic brake system. The high-tech brake discs weigh nearly half that of conventional cast-iron discs. Carbon ceramic brakes provide 10% stronger braking capabilities and system operating temperatures 5% below the average temperature of cast-iron brake discs. (From a press release on October 29, 2013)
-The Company announced that its new Extrema caliper is featured on the successor to the Ferrari Enzo, the new LaFerrari, which was unveiled at the Geneva Motor Show. (From a press release on March 5, 2013)
-The Company announced that it would supply brake calipers and discs for the 2014 Chevrolet Corvette. The components would be assembled into full corners at the Company's newly expanded Homer, Michigan facility in the US. (From a press release on January 14, 2013)
Awards-The Company announced that its disc processing plant in Mapello, Italy was awarded the General Motor's Supplier Quality Excellence Award for 2013. This is the second year that GM has given this particular award to its suppliers. (From a press release on October 31, 2013)
R&D Structure-Approximately 10% of the Company's total employees are engineers and product specialists that work in research and development.
-The Company has research facilities in Italy, China and the United States.
R&D Activities-The Company and the European Investment Bank (EIB) signed a financing contract for EUR 55 million aimed at supporting the Company's research and development in the areas of environmental impact control and weight reduction of brake systems. The loan is intended to support a four-year project with a total cost of approximately EUR 116 million. The project's goal is to increase the quality and safety of vehicles, while fostering better integration of modern hybrid and electric vehicles and Intelligent Transport Systems. (From a press release on December 18, 2013)
-The Company's research on cast-iron discs in 2013 focused on optimizing technical and technological parameters which affect the disc's vibration properties. The Company looks to improve a vehicle's comfort performance by adjusting the disc's parameters. Additionally, the Company has continued work in optimizing materials, mass characteristics, and cooling and ventilation capacity of cast-iron discs for heavy commercial vehicles.
Product DevelopmentLightweight brake disc
-Daimler AG, in partnership with the Company, developed a new brake disc which uses a combination of cast iron and steel to obtain 10-15% weight savings compared to conventional brake discs. The weight savings stem from a steel housing which is only 2.5 millimeters thick, compared to cast iron housings which range in thickness from 7.5-9 millimeters. Due to the benefits of the new brake disc, the Company is studying the applications of using both steel and cast iron in other automotive components.
Electric Parking Brake applications
-In 2013, the Company launched two Electric Parking Brake (EPB) applications with electronic control units featuring Company-designed hardware and software. These products were a basis for several other EPB projects currently in development including one where the electronic control unit is integrated into the ABS system.
|(in million EUR)|
|FY ended Dec. 31, 2013||FY ended Dec. 31, 2012||FY ended Dec. 31, 2011|
-EUR 115.4 million of the Company's total capital expenditure in 2013 was invested in property, plant and equipment. The remaining EUR 17.7 million was invested in intangible assets.
-In 2013, the Company's capital expenditures were concentrated in four regions. 28% of the Company's investment went to Italy, 23% to Eastern Europe, 15% to China, and 30% to the United States and Brazil combined.
Investment in Italy-The Company's investment in Italy primarily involved the acquisition of a production plant, machinery and equipment. In addition, the Company also spent EUR 12.0 million in development costs.
Investment Outside Italy<Eastern Europe>
-The Company's investments in Eastern Europe were part of a project to increase production capacity in Dabrowa Gornicza, Poland; and Ostrava-Hrabova, Czech Republic. The Dabrowa Gornicza plant casts and processes brake discs for cars and commercial vehicles, while the plant in Ostrava-Hrabova casts, processes, and assembles brake calipers and other aluminum components.
-In 2013, the Company continued its investments towards its production hub in Nanjing. Investments went towards a foundry, a facility for processing brake calipers and discs, and a Technical Development Center.
-The Company plans to invest EUR 115 million in the United States and Brazil from 2013 through 2015. EUR 83 million will be invested to increase the production capacity of the Company's facility at the Homer industrial hub as a response to the acquisition of new businesses and to improve the Company's market share in North America. The remaining EUR 32 million will be invested in Brazil to transfer its operations in Sao Paulo to Santo Antonio de Posse.