Ducati returns to profit – August 14, 2006
August 14, 2006
Filed under Features
Ducati Motor Holding S.p.A. said it achieved a profit of Euro 2.3 million ($2.9 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 ($223 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.
Ducati shipped 18,058 units during the first six months of the year, down 9.8 percent from 20,028 units sold in the first half of 2005. The company shipped 4,715 units to the United States during the six-month period, up 32.1 percent from the 3,569 units shipped in the first half of 2005.
First half unofficial Ducati registrations numbered 21,563 units, down 1.8 percent from 21,967 units in the first half of 2005. Registrations in the U.S. totaled 4,521 units, up 15 percent from 3,933 units during last year's first half.
Gross margin was Euro 49 million ($63 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.
“We are beginning to see the results of the new strategy, which sees Ducati focused on the sale of models with higher margin,” said Federico Minoli, Ducati chairman and CEO. “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.” psb