Brembo S.p.A. Business Report FY ended Dec. 2017
Financial Overview |
(in million EUR) |
| FY ended Dec. 31, 2017 | FY ended Dec. 31, 2016 | Rate of change (%) |
Factors | |
| Overall | ||||
| Net Sales | 2,463.6 | 2,279.1 | 8.1 | |
| Operating Income | 346.3 | 327.5 | 5.7 | - |
| Sales by application | ||||
| Passenger Car applications | 1,891.0 | 1,736.2 | 8.9 | 1) |
| Motorbike applications | 226.9 | 205.1 | 10.6 | 2) |
| Commercial Vehicle applications | 226.1 | 224.5 | 0.7 | 3) |
Factors
1) Passenger Car applications
-Sales in the Company’s Passenger Car segment increased by 8.9% in the fiscal year ended December 31, 2017 to EUR 1,891.0 million. Excluding the consolidation of Asimco Meilian Braking Systems, sales increased by 7.6% in the segment. Improved sales in China and Europe contributed to the gain in sales in the segment.
2) Motorbike applications
-Sales in the Motorbike segment increased by 10.6% in the fiscal year ended December 31, 2017 to EUR 226.9 million. Improved sales in Italy and India contributed to the gain in sales in the segment.
3) Commercial Vehicle applications
-Sales in the fiscal year ended December 31, 2017 for the Company’s Commercial Vehicle segment increased by 0.7% over the previous year to EUR 226.1 million. Sales across light, medium and heavy commercial vehicle segments all increased compared to the previous year, thus driving the Company’s increase in sales.
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, Poland, China and the United States.
R&D Activities
-The Company continued the development of a new simulation methodology which includes parameters that can influence a brake disc’s vibratory capacities. The completed methodology would allow the Company to define parameters that could improve the brake system’s comfort characteristics early in its design.
-In regards to cast-iron brake discs, the Company’s research and development activities include reducing the disc’s weight, changing the disc’s geometry, and improving the disc’s cooling and ventilation capacity.
-The Company has continued its development of innovative friction materials for use in lightweight brake discs. The Company can be considered to be the only manufacturer with the in-house expertise necessary for innovative material development.
-The Company continued research on developing mechatronic systems, which has become more commonplace in the automotive market. The high level of integration will allow the brake system to interact with other vehicle systems, such as electric traction motors and new suspension-steering concepts. The Company is continuing to develop a Brake By Wire system, and electric parking brakes (EPB) where the electronic control is integrated in the ABS units.
Product Development
Lightweight brake discs
-In the Company’s work towards reducing brake disc weight, in order to reduce fuel consumption and lower emissions, it created a new brake disc concept. The concept utilizes cast iron for the braking ring and thin steel laminate for the disc hat, which reduces the weight of the disc by up to 15% compared to standard brake discs. A production version of the concept is being used for the entire range of the Mercedes MRA platform which includes the S-Class, E-Class and C-Class.
Aluminum alloy brake calipers
-The Company was able to create a brake caliper from an aluminum alloy in a thixotropic state, that is, an alloy made at a lower temperature than that of casting. In doing so, the new brake caliper provides weight savings between 5 and 10% while still providing the same performance capabilities.
Capital Expenditure |
(in million EUR) |
| FY ended Dec. 31, 2017 | FY ended Dec. 31, 2016 | FY ended Dec. 31, 2015 | |
| Overall | 360.7 | 263.6 | 155.9 |
-Of the Company’s capital expenditures for the fiscal year ended December 31, 2017, EUR 326.7 million was invested in property, plant and equipment, while the remaining EUR 34.0 million was invested in intangible assets.
Investment
-The Company announced it had successfully performed its first iron pour at its new foundry in Escobedo, Mexico. The 269,000-square-foot facility, the Company’s ninth foundry worldwide, has a melting capacity of approximately 70,000 tons per year and will cast iron brake discs for the company’s nearby disc machining plant. The first pour is a preliminary test that ensures all systems are functioning properly and is the initial step in testing the foundry’s full production line. Aluminum calipers have been in production at Escobedo since October 2016, with a USD 131 million investment split between the two Escobedo facilities. The production of the Escobedo facilities is dedicated to U.S., European, and Asian OEMs with manufacturing plants in Mexico.