Ducati Motor Holding S.p.A. said it achieved a profit of Euro 2.3 million for the first six months of the year, up from a loss of Euro 3.5 million in the first half of 2005.
Revenue for the half-year ended June 30 was Euro 173.4 million, down 4.1 percent compared to revenue of Euro 180.8 million during the same period last year.
Motorcycle revenue for the period decreased 4.7 percent to Euro 134.2 million and accounted for 77.4 percent of revenues. Motorcycle-related products, including spare parts, accessories and apparel, were down by 4.6 percent to Euro 36.6 million.
Gross margin was Euro 49.0 million, or 28.2 percent of revenues, versus Euro 40.4 million or 22.3 percent of revenues in the first half of last year.
"Despite the planned reduction in volumes in terms of sales, we closed a first semester 2006 with an improved operating margin,” said Federico Minoli, Ducati Chairman and Chief Executive Officer. “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.”
It has been a busy year for Ducati Motor. In December 2005, Texas Pacific Group agreed to sell its controlling stake in the motorcycle manufacturer to Italian private equity firm Investindustrial Holdings; in April, a new Board of Directors was appointed and details of a three-year plan to “re-launch” the brand were revealed; and in May, the company began preparations for a capital increase via the sale of newly issued shares of Ducati Motor Holding SpA on the Milan stock exchange, a transaction process which terminated with the subscription of 160,343,960 shares worth Euro 79,931,464.06.
"Thanks to the capital increase which was subscribed to in full, Ducati is in a solid financial position,” said Enrico D'Onofrio, Ducati's Chief Financial Officer. “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.”
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