Dec. 12, 2008 – Finance Digest
KTM increases worldwide sales
Austrian manufacturer KTM increased its worldwide sales by 7 percent in its recently concluded fiscal year but does not expect such conditions to last.
The company is expecting the current economic climate to impact sales going forward and thus is cutting production by around 10 percent for the upcoming fiscal year, the company reported.
KTM attributed its increased revenue to improving sales from its LC4 (690 Duke, 690 Enduro, 690 Supermoto) and LC 8 (1190 RC8, 990 Supermoto) series as well as improved turnover in its ATV segment. Parts, clothing and accessories sales also have improved.
Total year-end sales amounted to $777 million. However, earnings per share dropped more than 75 percent, to euro 0.88 from 3.57.
The company said, “In view of the action we have taken to optimize operations and the stronger U.S. dollar/EURO exchange rate compared with the previous business year, we can assume that if the recession is slight, we will be able to marginally increase the operating result despite the planned reduction in volume and achieve break-even free cash flow.”
UTI reports improved fourth-quarter net income
Universal Technical Institute (UTI) reported net income of $600,000 for the fourth quarter, which ended Sept. 30. Last year’s fourth quarter had a net loss of $1.3 million.
The company’s fourth quarter net revenues were $84.6 million, which is a 2.7 percent decrease from 2007. The decrease in revenues is primarily due to a decline in average undergraduate full-time student enrollment and an increase in need-based tuition scholarships and higher military and veteran discounts. These decreases were partially offset by higher tuition prices and one additional revenue-earning day during the fourth quarter.
Operating income for the fourth quarter was $500,000 compared to an operating loss of $1.9 million in the same period last year.
Net income for the year was $8.2 million compared to $15.6 million last year. Net revenues were $343.5 million. That was a 2.8 percent decrease from 2007.
