BREMBO : Le Conseil d'Administration approuve les r?sultats au 30 septembre 2006

Résultats troisième trimestre :

(€ Million)	Q3 2006	Q3 2005	Var % 06/05
Chiffre d’affaires	185.1	165.0	+ 12.2 %
EBITDA	26.0	24.6	+ 5.7 %
EBIT	16.5	15.9	+ 4.3%
Bénéfice net avant impôts	11.7	15.2	-23.2%
Bénéfice net	6.7	9.2	-27.7%

Consolidated results of the Group in Q3 2006

Consolidated group revenues in the quarter amount to € 185.1 million, up 12.2%.

Applications mainly contributing to the growth are commercial vehicles (+20.2%), racing (16.5%) and passengers cars (+13.4%). The motorcycle segment is stable (+0.9%). From a geographic standpoint, growth is driven by Brazil, up 35.8%, and by Europe, which grew by 19.2% on the whole. France, after several months of declining sales, grew by 37.5% in the third quarter. Still a good growth in Germany (+22%) and Italy (+16.9%). Revenues in the Nafta area are down 10.2% after a significant growth in the first six months of the year. The drop in sales to Asia (-34.7%) is due to the phase-out of some passenger car models of some Japanese customers and will be recovered through the launch of the new models.

In Q3 the cost of goods sold and other operating costs amount to € 122.9 million, up 14.9% over the same period last year; they are 66.4% of revenues (64.8% in Q3 2005). The comparison with the same period of previous year is not consistent, as the latter benefited by a capital gain of € 1.9 million. Their increase is also due to the extraordinary costs connected with the completion of the industrial plan and, particularly, to the start-up phase of the disc machining plant located in Dabrowa, Poland.

Capitalized development costs amount to € 2 million in the quarter, up 43.8% compared to € 1.4 million of previous year.

Personnel expenses are € 36.2 million, +8.4% over previous year, the ratio on sales decreases from 20.2% to 19.6%.

EBITDA rises 5.7% to € 26 million, or 14% of revenues (14.9% in 2005); like-for-like margins of Q3 2006 (disregarding the effect of the above-mentioned capital gain) are aligned to Q3 2005.

Depreciation and amortization in the quarter are € 9.5 million, up 8.1% over the same period last year. The increase reflects the important investment programs realized in the previous months, among which the new Polish foundry, that started to be depreciated in Q3. EBIT amounts to € 16.5 million, or 8.9% of sales, up 4.3% over previous year.

Net financial charges increase sharply in the quarter, partly due to the increased debt level and to higher interest rates, but mainly due to the non-recurring effect of the fair value evaluation of a derivative financial instrument. This derivative was closed during the month of October with a positive result of € 0.9 million for the cumulated nine-month period. Estimated taxes for the quarter are € 4.9 million; tax rate is 41.7%, higher than last year also due to the recent Italian tax laws.

Net consolidated profit amounts to € 6.7 million, down 27.7% over previous year due to the above-mentioned non-recurring effects.

In the quarter € 16.1 million were invested for tangible and intangible assets (€ 21 million in the same period of 2005).

Net financial indebtedness at 30.9.2006 is € 238.8 million, versus € 193.1 million at 31.12.2005. This increase is connected with the important investment programs of the previous months and to some non-recurring elements impacting on inventories and receivables. In the quarter under exam, though, the net indebtedness decreased by € 5.2 million from € 244 million at 30.6.2006.

The cumulated nine-month period results

The cumulated results as of 30th September 2006 show an increase of revenues of 11.2% to € 598.9 million. EBITDA is € 89.7 million, up 9.8% over the nine months of previous year and with a ratio on revenues of 15%. Depreciation and amortization are € 28.2 million, up 0.7%, thus bringing EBIT to € 61.5 million. After deducting taxes for € 20.5 million, net profit is € 29.8 million, up 0.2% over previous year.

Expected evolution

A positive month of October and the order portfolio show good perspectives of revenues and margins for the fourth quarter. The net financial position won't benefit by the building sale within the end of the current year, as previously announced, since the recent Italian tax law postponed the potential sale to next year.

Here attached you will find the consolidated Balance Sheet and Income Statement, which are not subject to review by the Independent Audit Company.

For further information:

Investor Relations

Orsi Corrado
Tel. +39 035 605 884
Fax +39 035 605 518

Roberto Vavassori
Tel. +39 035 605 223
e-mail: [email protected]

Media Relations:

Francesca Muratori
Tel. +39 035 605 277
Fax +39 035 605 273
e-mail: [email protected]

Internet website: www.brembo.com