Bologna – The Board of Directors of Ducati Motor Holding S.p.A. approved today the results of the first quarter 2008 which show a general improvement of all the financial indicators.
Registrations increased by 9.0% compared to last year, going from 8,751 bikes to 9,537, in line with the Industrial Plan forecast and compared to a reference market declining by 9.3% . 11,948 bikes were sold in the first quarter compared to 8,922 in 2007, an increase of 33.9%. Revenues for the first quarter are €140.8 Million (€147.0 Million at constant Forex) compared to €95.4 Million during the first quarter of 2007 (+47.6% at current Forex and +54.1% at constant Forex), increasing thanks to the sales of the new Superbike 848, 1098R and Desmosedici RR, as well as the Hypermotard, which was not yet on the market in the first quarter 2007.
Gross Margin for the First Quarter amounted to €40.5 Million, or 28.8% of revenues, versus €25.9 Million or 27.1% of revenues in 2007. The growth in percentage margin is due mainly to better mix which amply counterbalances the negative impact of Forex and depreciation.
EBITDA was €28.7 Million (€34.4 Million at constant Forex), or 20.4% of revenues at current Forex (23.4% at constant Forex), compared to an EBITDA of €14.5 Million in 2007 or 15.2% of revenues.
The operating result (EBIT) was positive at €19.6 Million versus €9.3 Million (+110.7%) previous year, thanks to the improved EBITDA and despite higher depreciations and writeoffs.
EBT was €21.6 Million versus €9.0 Million (+139.5%) the previous year, thanks to the improved operating result and Net Income.
Net result was positive at €14.9 Million compared to €5.6 Million the previous year. Debt was reduced to €15.2 Million from the €52.8 Million in March 2007, mainly thanks to the significant improvement of operating cash flow.
Gabriele Del Torchio, Ducati’s CEO commented on the first quarter results: “We are satisfied with this year’s opening results, even though there are some elements of uncertainty that make us wary of predicting the 2008 outlook.
The generally positive market conditions at the beginning of the year deteriorated progressively in March and April, with particularly negative prospects in the USA due to the macroeconomic situations and credit restrictions.
The delta between registrations and sales in the first quarter has created stock for the network in preparation for sales during the summer season, as planned in the Industrial Plan. During the year we will keep registrations tightly controlled in order to guarantee the alignment of dealer and retail sales in the event that the negative market trend of March and April continues.
The CFO, Enrico D’Onofrio, added: “the first quarter of 2008 closed above our targets and above last year’s results. However the signs of the slowing market and the further weakening of the dollar mean we remain prudent. For this reason we confirm the targets set for the year with revenues increasing by 15% and EBITDA at 15% of revenues”.
Furthermore, the Board of Directors has today resolved the merger by absorption of the wholly-owned subsidiaries Ducati Consulting S.r.l. and Ducati Retail S.r.l., pursuant to article 2502 and article 2505 of the Italian Civil Code.
Founded in 1926, Ducati builds racing-inspired motorcycles characterized by unique engine features, innovative design, advanced engineering and overall technical excellence. The company produces motorcycles in six market segments which vary in their technical and design features and intended customers: Superbike, Desmosedici RR, Monster, Multistrada, SportClassic and Hypermotard. The company’s motorcycles are sold in more than 60 countries worldwide, with a primary focus in the Western European, Japan and North American markets.
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