May 13 2005.
Ducati Motor Holding S.p.A. has today announced financial results for the first quarter ended March 31, 2005. The Figures also show a 36% drop in UK sales for the period.
For the first quarter of 2005, revenues were Euro 85.1 million, down 15.1% including forex effects (or down 12.4% excluding forex effects) over the same period in 2004. The fall was mainly due to a 5.3% decrease in unit sales, a negative bike mix, a decrease in accessories and apparel sales, and continuing adverse forex effects. Revenues from Ducati motorcycles for the period decreased 14.0% to Euro 68.8 million and represented 80.8% of total revenues. Motorcycle-related products, including spare parts, accessories and apparel, decreased 16.8% to Euro 15.7 million over the comparable period in the previous year.
Gross margin was 32.2% of revenues including forex effects (or 34.2% excluding forex effects) versus 35.9% during the same period a year ago.
Pre-tax profit for the Ducati Group was a loss of Euro 1.0 million in the first quarter of 2005, compared with a profit of Euro 0.8 million in the first quarter of 2004.
Unofficial Ducati worldwide registrations, an indication of retail sales, were down 16% versus last year's first quarter. Registrations were up 8% in the US and 1% in the non-subsidiary countries, while decreases were recorded in France down 5%, Italy down 23%, Germany down 23%, Japan down 31%, Benelux down 36% and the UK down 36%.
The Company's net debt as of March 31, 2005 was Euro 122.3 million, in line with the Euro 121.2 million on the same date a year earlier, and up versus Euro 116.2 million as of December 31, 2004. The company's gearing ratio was 82% as of March 31, 2005, versus 76% on the same date a year earlier and 78% on December 31, 2004.
"Despite the weakness in the market the results of the first quarter of 2005 have been in line with our expectations. However, as expected, 2005 will be back-loaded in terms of sales and bike mix, due to the introduction of the Sport Classic," announced Federico Minoli, Ducati Chairman and Chief Executive Officer. "While registrations were down in January and February, this trend reversed in March and April and shows encouraging signs of continuing.
"The upturn we have seen in March and April as well as the 3,000 pre-sold Sport Classics, give us reason to maintain our objectives of a return to profit and a net debt reduction for 2005 ," said Enrico D'Onofrio, Ducati Chief Financial Officer. "Based on results at the end of June, when the peak registration season will be just over, we will have better visibility of full-year results."
On March 31, 2005, the Company had re-purchased 3,769,249 shares, equivalent to Euro 4,082,096.67 or 2.37% of its stock capital.
First quarter 2005 financial results were approved by the Board of Directors on May 12, 2005.
Source: Ducati Motor Holding S.p.A.