Ducati Motor Holding S.p.A., recently revealed details of a three-year plan to “re-launch” the brand. The move comes in the wake of a downturn in business, the installment of a new majority owner and a new Board of Directors.
“A better revenue mix and the implementation of efficiency measures - expected savings on both structural costs and on the components purchasing process - will progressively enhance earnings,” company officials revealed in a prepared statement. “Net result will still be negative in 2006, will virtually break-even in 2007 and will be positive in 2008.”
In its new plan, Ducati said a past focus on high margin units will turn into a more favorable revenue mix in the future during the next three years. Company officials said modest sales growth is expected through 2008 - “especially after 2007, mainly driven by an expected higher average selling price given a more favorable product mix.”
Ducati said registrations (sell-out) during the 2006-2008 period will be stable and similar to 2005 levels. Company officials said shipments (sell-in) should be in line with registrations in 2008 but lag behind registrations in 2006 and 2007 to favor the reduction of dealer stock.
Read more about Ducati in the April 24 issue of Powersports Business.
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