KTM: Rising Sales, Stagnating Profit
The Austrian producer of motorcycles recorded sales of 19,408 vehicles (+29.9%). Turnover was up by 13.5% to € 135.7m.
Despite a still restrictive market environment - the total European market declined by 8.6% compared to previous year - KTM achieved to increase both sales and turnover considerably. The decrease on the overall European market is primarily related to the development in the largest European markets such as Spain (-30.2 %), Italy (-24.4 %) and France (-4.3 %). In contrast, the overall US-market developed slightly positive with 5.2 % compared to previous year.
KTM managed to increase turnover to € 135.7m (+13.5 % compared to previous year). Sales increased by even 29.9 % compared to previous year to 19,408 vehicles. As a result, the European market share rose by 16.1 % to 6.5 % and the US market share by 23.1 % to 3.2 %.
In the first quarter of 2012 KTM achieved an EBIT of € 1.4m, including expenses for the product launch of the new Duke 690 and the Freeride 350 as well as expenses for developing emerging markets in Southeast Asia. EBITDA amounted to € 9.8m (+2.1 % compared to previous year).
"Crucial for these enormous increases were the successful launches in the street segment (Duke 690) and offroad segment (Freeride 350) as well as the continuing strong demand for the street model Duke 125 developed in cooperation with Bajaj", explains Stefan Pierer, Chairman of the Executive Board of KTM AG.
In April a bond with a volume of € 85m was issued successfully. Together with the planned capital increase of € 8.4m KTM secured a stable long-term financing structure for the next 5 years.
Due to the Euro crisis the declining development on the European market is expected to continue. In contrast, the US market shows a stable respectively slightly positive development.
By launching new models KTM consequently follows a global product strategy and expansion into Asian markets. Under these circumstances KTM expects further increases in sales and turnover for 2012.