Improved accessories sales help Ducati post 1Q profit – June 5, 2006

Ducati Motor Holding S.p.A. posted a profit in the first quarter thanks to a positive product mix, increased accessories sales and a positive exchange rate.
Ducati said net result for the first quarter ended March 31 was a profit of Euro 1.5 million ($1.9 million), up from a loss of Euro 2.6 million ($3.3 million) in the first quarter of 2005.
First-quarter revenue was Euro 78.2 million ($99.8 million), down 4.5 percent from Euro 81.9 million in the same period in 2005.
Motorcycle revenue was Euro 60.2 million ($76.8 million), down 8.6 percent compared to the same period last year, and accounted for 77 percent of total revenues. Revenue from motorcycle related products — including spare parts, accessories and apparel — was Euro 16.9 million ($21.5 million), up 9.9 percent compared to the first quarter of 2005.
Gross margin for the three-month period was Euro 24.2 million ($30.8 million), or 31 percent of revenues, compared to Euro 17.9 million, or 21.8 percent of revenues, during the same period last year. Company net debt as of March 31 was Euro 141.2 million ($180 million), down from debt of Euro 159.2 million on March 31, 2005.
Ducati shipped 7,337 units during the three-month period, down 18.2 percent from the 8,965 units shipped during the same time last year. North America received 2,502 units, up 46.3 percent from 1,710 units shipped during the first quarter last year.
The company said unofficial worldwide registrations totaled 8,165 units, were up 3.3 percent from 7,906 units during the same period last year. Registrations were up 30 percent to 640 units in Japan, 19 percent to 1,670 units in the United States, and 18 percent to 1,473 units in non-subsidiary countries. In Europe, registrations were up 3 percent in Germany, down 3 percent in France, down 6 percent in Italy, down 25 percent in Benelux countries and down 32 percent in the United Kingdom.
“Thanks to a favorable product and geographic mix, the first quarter of 2006 sees a return to profit and an improved net financial position on last year,” said Enrico D’Onofrio, chief financial officer for Ducati. “However, year-end forecast remains prudent and our main objective for 2006 is to reduce stock in our dealer network and improve structural costs.”