August 4 2006.
The Board of Directors of Ducati Motor Holding S.p.A. (Borsa Italiana: DMH; NYSE: DMH) yesterday approved its financial results for the first half of 2006.
First half 2006 revenues were Euro 173.4 million, down 4.1% compared to Euro 180.8 million over the same period in 2005. This was due to a reduction in sales in motorcycles and spare parts, partially offset by a positive bike mix and increased sales in accessories. Revenues from motorcycles for the period decreased 4.7% to Euro 134.2 million and accounted for 77.4% of revenues. 18.058 units were sold in the period. Motorcycle-related products, including spare parts, accessories and apparel, were down by 4.6% to Euro 36.6 million over the comparable period in the previous year.
Gross margin for the first half of 2006 amounted to Euro 49.0 million or 28,2% of revenues versus Euro 40.4 million or 22.3% in the first half of last year, an increase which can be attributed to an improved bike mix and reduced cost of goods.
EDITDA was Euro 22.8 million or 13.1% of revenues for the first semester of 2006 against Euro 19.2 million or 10.6% of revenues over the same period last year, mainly due to the improved product mix.
Operating result (EBIT) for the first half of 2006 amounted to Euro 12.5 million or 7.2% of sales versus Euro 4.6 million or 2.5% of sales over the same period of 2005.
At EBT level, the result was a profit of Euro 8.9 million versus a loss of Euro 0.7 million over the same period last year.
Net result for the first semester 2006 was a profit of Euro 2.3 million compared to a loss of Euro 3.5 million in the first half of 2005.
Company net debt at June 30, 2006 was Euro 33.4 million versus Euro 116.3 million at June 30, 2005.
For the first half of 2006, unofficial Ducati registrations were down by 2% over the same period last year. Registrations in the US were up by 15%, in the non-subsidiary countries by 7% and in Japan by 3%, while registrations were down in France (-3%), Italy (-7%), Benelux (-13%), Germany (-14%) and the UK (-25%).
As of June 30, 2006 the Company did not hold any treasury shares.
Federico Minoli, Ducati Chairman and Chief Executive Officer commented: "Despite the planned reduction in volumes in terms of sales, we closed a first semester 2006 with an improved operating margin. We are beginning to see the results of the new strategy which sees Ducati focused on the sale of models with higher margin. The main objective for the coming months is to maintain a tight control on sales and production in order to avoid excessive stock and to successfully prepare for the launch of the new models".
Enrico D'Onofrio, Ducati's Chief Financial Officer added: "Thanks to the capital increase which was subscribed to in full, Ducati is in a solid financial position. As well as this, interest rates negotiated for the bank financing are competitive with the best market conditions and we can look ahead with confidence to the future commitments necessary to implement the Company's relaunch plan".