Ducati sees a slight increase in revenue

Ducati Motor Holding S.p.A. (NYSE: DMH) reported a slight revenue increase for the first nine months of the year, but the Italian company still posted an overall loss of Euro 4.6 million ($5.8 million).
Even though DMH remains in the red, that net result is a substantial improvement over the same period last year when Ducati announced a loss of Euro 16.6 million ($21.2 million).
Also, the company’s gross margin for the nine-month period, which ended Sept. 30, was Euro 64.1 million ($82 milion), a 31 percent improvement over last year’s Euro 48.9 million.
“Despite the planned reduction in volumes in terms of sales, we closed the first nine months 2006 with an improved operating margin,” DMH CEO Federico Minoli said in a news release. “As planned, we increased registrations while reducing sales in order to lower dealers’ stock.
“The main objective for the coming months is to focus sales on high margin models, to continue the stock reduction effort and to successfully prepare for the launch of the new models.”
Motorcycle revenues in the first nine months amounted to Euro 174 million ($223 million), up 1.8 percent versus the same period in the previous year.
The company also announced Ducati registrations were up 2 percent over the same period last year, with the United States leading the way. Registration in the United States jumped 23 percent. Japan and France were up slightly while registrations were down in the United Kingdom (-18 percent), Germany (-10 percent) and Italy (-6 percent).
Overall revenue was Euro 232 million ($297 million), which increased 1.4 percent compared to the same period last year.
However, Ducati spare parts, accessories and apparel showed a decrease in revenues of 2.7 percent compared to 2005.
Looking forward, Ducati Chief Financial Officer Enrico D’Onofrio said, “We confirm the targets for 2006, which are revenues in the range of 300 million Euro, EBITDA equal to about
10 percent of revenues. Net result and financial position will be negative but considerably improving compared to last year.”
Company net debt as of Sept. 30 was Euro 46.7 million ($59.8 million) versus Euro 129.9 million ($166.5 million) at Sept. 30, 2005, due largely to a capital increase that came earlier this year.

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