Nov. 12, 2007 – Finance Digest
November 12, 2007
Filed under Uncategorized
KTM ends fiscal year up in revenue
KTM increased its motorcycle sales and overall revenue for its recently concluded fiscal year, the company reported.
The Austrian manufacturer’s year-end revenue of euro 566 million ($810 million) was a 12 percent increase over the previous fiscal year.
KTM sold 90,306 units worldwide, a 7 percent rise over the previous year. The company said the introduction of streets models, including the 690 Supermoto and the 990 Super Duke R, helped spike annual sales.
The company not only increased sales, but also its employee base. KTM added 9.3 percent more employees in its fiscal year and now has more than 1,930.
More than 18 subsidiaries distribute KTM products to 1,400 dealerships worldwide.
GE Money, Commercial Finance post revenue increases
GE Money and GE Commercial Finance, two of the company’s segments in the powersports industry, showed vast improvements in their third-quarter earnings.
GE Money posted earnings of $6.2 billion for the third quarter, which ended for GE on Sept. 30. That earnings amount was a 23 percent boost from the prior-year quarter.
GE Commercial Finance reported more than $7 billion in earnings, a 17 percent increase from the prior year period.
GE, overall, had net earnings of $5.5 billion, up 14 percent from the year-ago period, and achieved its 11th straight quarter of organic revenue growth, according to a company press release.
“GE delivered a solid quarter in spite of extreme volatility in the financial services market and some one-time items in our industrial businesses,” GE CEO Jeff Immelt said in a press release.
Tank Sports reports increased revenue in its second quarter
Tank Sports, which develops and markets Chinese-built powersports vehicles, increased its net revenue in its second quarter, which ended Aug. 31.
Tank’s second-quarter revenue rose 16.3 percent, according to a company press release. The growth in sales was mainly attributed to a recent acquisition of Redcat, which increased the number of dealers and products Tank sells.
The quarterly report also said the company’s increase in total operating expenses led to a net loss of $498,355, a sharp drop compared to $275,406 in net income achieved for the same period last year.
Company expenses have increased due to the expansion of its warehouse storage (from two to six warehouses nationwide), insurance expenses and rental and professional fees.
“Generally speaking, the second quarter numbers were more or less within the expectation except the growth rate in revenues is less than projected,” Tank Sports CFO?Jing Long said in a company press release.
Tank Sports develops, engineers and markets on-road motorcycles and scooters as well as ATVs, dirt bikes and go-karts in China.
Dover’s quarterly earnings increase 15 percent
Dover Corp., which includes aftermarket manufacturers Wiseco and Warn among others, reported record quarterly revenue and earnings for its fiscal third quarter.
Dover, which is also in the fluid management and electronic technology markets, had quarterly revenue of $1.8 billion, a 15 percent increase over the year ago period.
In its Mobile Equipment Division, which includes Wiseco, the company reported a 12 percent rise in quarterly revenue.
The Material Handling Division, which includes Warn, had a 27 percent increase in sales, the company reported.
GE?Capital Solutions plays role in recent H-D acquisition
Clark Vitulli, founder and former CEO of America’s Power Sports, and Allen Good, an associate of Vitulli’s from APS, have acquired a St. Augustine, Fla., Harley-Davidson dealership with a $3.4 million loan from GE Capital Solutions, Franchise Finance, the company announced in a press release.
The loan, based on the projected value of the business, is going to be used to revamp the Harley-Davidson store and to modernize the showroom.
In an effort to better serve the Harley-Davidson customer, Vitulli also will be offering more financing and adding new programs for sales, parts, service and motorclothes.
GE Capital Solutions, Franchise Finance is a lender serving customers in the powersports, restaurant, hospitality, branded beverage and automotive aftermarket industries.
ADP reports 13.5 percent growth in first quarter
Automatic Data Processing (ADP) reported a 13.5 percent revenue growth to $2 billion for the first quarter, which ended Sept. 30, an ADP press release stated.
Revenue growth benefited about 1 percent from foreign exchange rates during the quarter. Pretax and net earnings from continuing operations grew approximately 9 percent and 10 percent.
ADP CEO and President Gary Butler says the company is happy with the results since they were higher than its expectations.
“I am particularly pleased to anticipate delivering fiscal 2008 earnings per share growth at the high end of our forecast,” he said.
Michelin reports decrease in third quarter
Michelin’s third quarter results, which came out Tuesday, Oct. 30, declined and were below analysts’ expectations, according to an article on Forbes.com.
The company reported that third quarter sales had come in at $6.02 billion, which is 2.5 percent higher than it had made the year before. However, it’s below an average estimate of $6.07 billion a panel of 14 analysts surveyed by?Thomson Financial expected the company to make.
The company is optimistic about its fourth-quarter results because Eastern Europe and Russia are seeing an increase in sales.
The company expects to see an overall improvement in 2007 over 2006.