Mar. 31, 2008 – Finance Digest
March 31, 2008
Filed under Features
KTM reports increased first-quarter sales
KTM Power Sports AG’s first-quarter revenue increased by more than 15 percent, the Austrian manufacturer reported.
KTM’s revenue in its first quarter for its 2007-2008 fiscal year rose to euro 149.4 million (more than $228 million) while its profit per share doubled to euro 2.18.
“Despite the difficult global economic circumstances we were able to continue our success from last year,” Stefan Pierer, CEO of KTM Power Sports AG, said in a press release.
KTM attributes the first-quarter revenue increase to elevated sales in its enduro racing segment and in its parts and OEM engine business.
The manufacturer also says the response to its initial superbike, the 1190 RC8, has exceeded expectations. The bike was launched last fall at EICMA in Milan, Italy.
Looking ahead, the company foresees increased sales in its off-road and street segments, both of which have been expanded in product range.
In its financial report, KTM also announced it has sold WP Suspension to CROSS Automotive for strategic reasons. The company believes WP can increase its third-party business by becoming independent of KTM.
Holley Performance Products Announces Bankruptcy Filing
Holley Performance Products, which includes a few aftermarket brands, has filed for bankruptcy, the company reported.
Holley says its owners and investors overwhelmingly approved a plan to enhance the company’s capital structure by converting a majority of the company’s debt into equity.
Holley Performance Products, which are used in the powersports, marine and racing industries, include Holley, Weiand, Hooker, FlowTech, Earl’s and NOS.
“This is a prudent financial move on the part of our owners and investors,” said Thomas Tomlinson, the company’s chief financial officer.
“It tremendously strengthens our company’s financial position and provides substantial flexibility to invest in our future.
“The actual conversion of debt into equity will be accomplished through a prepackaged bankruptcy filing that will cancel out the old capital structure and formally establish the new one. Customers, suppliers and employees will not be affected.”
Tomlinson emphasized it will be “business as usual” at Holley throughout the restructuring process, which is expected to be completed in as few as 45 days.
“We are very pleased with the transformation that has taken place here at Holley during the last several years,” said Holley CEO James Wiggins. “Today, Holley is a lean and focused enterprise with strong customer relationships, significant technological capabilities and diversified revenue sources. We have established a good track record of profitability and growth in enterprise value.”
Viper motorcycle hires chief financial officer
Viper Motorcycle Co., a wholly owned subsidiary of Viper Powersports Inc., hired Peter Anton as its new chief financial officer.
Anton has 10 years of experience in the custom V-twin industry, including serving as CFO for Big Dog Motorcycles for about five years. He also had similar roles at American IronHorse and Titan Motorcycle Co.