KTM’s Cross sets deadline for buyback of Polaris stock – December 25, 2006
December 25, 2006
Filed under Features
Cross Industries AG, the majority shareholder of KTM Power Sports AG, has informed Polaris it will exercise its option to buy the block of shares Polaris holds in KTM by fall of 2007 at the latest.
KTM Power Sports AG is a public limited company with shares listed on the Vienna Stock Exchange. Leading shareholders are Cross Industries AG, with more than 50 percent, and Polaris Austria, with about 25 percent.
Approximately 20 percent is in Free-Float and the Hofer Private Foundation owns about 5 percent.
The dominating company of the KTM Group, which consists of 19 other companies, KTM Power Sports AG indirectly owns 99.77 percent of KTM-Sportmotorcycle AG, the actual manufacturer of motorcycles.
Cross said the buyback from Polaris enables KTM to secure its independent development in the future.
KTM Power Sports recorded a net profit of Euro 20 million ($26.5 million) for its fiscal year ended Aug. 31, up 65 percent from a profit of Euro 12.1 million in the previous fiscal year. Sales totaled Euro 504.5 million ($670 million), up 32 percent from sales of Euro 381.9 million in the year-ago period.
KTM-Sportmotorcycle AG sold 84,420 motorcycles, up roughly 5 percent from 80,200 units during the previous fiscal year. The manufacturer said the bump in sales came from its newly introduced models for the street.
The United States continues to be the brand’s largest market, representing 25 percent of total unit sales, followed by Italy, Germany, Australia and France.
KTM anticipates results, especially product margins, to experience “slight improvement” this year, “especially through the ongoing transition in the direction of twin cylinder models,” the company noted in a recent investor update.
Research and development efforts at KTM headquarters in Mattighofen, Austria, will focus on on- and off-road models powered by the new LC4 engine, on the development of the Superbike RC8, and on new off-road racing models.
KTM most recently told dealers in North America to expect a sport ATV and the 990 Super Duke for 2007, and an 1150cc supersport bike for 2009.