DMH Bank of America

Ducati Motor Holding Announces First Nine Months 2004 Results Sales Decreased in Third Quarter, Ducati Reviews 2004 Target BOLOGNA, Italy, November 12 /PRNewswire-FirstCall/ -- Ducati Motor Holding S.p.A. (NYSE:DMHNYSE:BorsaNYSE:ItalianaNYSE:S.p.A:NYSE:DMH), a leading manufacturer of high performance motorcycles, today announced first nine months 2004 financial results. Revenues for the first nine months 2004 were Euro 268.0 million, down 4.5% excluding forex effects, (or down 5.8% including forex effects) versus last year. Revenues from motorcycles for the period decreased 11,1% to Euro 204.2 million and represented 76.2% of revenues. Motorcycle-related products, including spare parts, technical accessories and apparel, increased 9.6% to Euro 58.9 million over the comparable period in the previous year. Gross margin was 37.2% versus 35.2% last year, thanks to product cost reduction and operational efficiencies and related product sales increase, partly offset by a negative forex effect. EBITDA was Euro 26.1 million, or 9.7% of revenues, down 6.9% excluding forex effects (or down 15.5% including forex effects), versus Euro 30.9 million, or 10.8% of revenues in first nine months 2003. At EBT level, the result was a loss of Euro 9.8 million versus a loss of Euro 7.0 million including Euro 3.5 million restructuring reserve in the first nine months 2003, due to a lower EBITDA and higher financial charges. The Company's net debt at September 30, 2004 was Euro 112.4 million, in line with the Euro 112.2 million at the same date a year earlier and down against Euro 117.2 million at December 31, 2003. The company's gearing ratio was 75% at September 30, 2004 versus 74% at the same date a year earlier and versus 74% at December 31, 2003. In the first nine months of 2004 unofficial Ducati worldwide registrations, were down 4.4% versus last year, with non-subsidiary countries down 1%, Italy down 3%, France down 4%, UK down 13%, Germany down 16%, Japan down 17%, Benelux down 18%, and while the US was up 20%. "After reporting a positive first half of 2004, Ducati business reversed over the summer, due to a difficult market situation and the delayed introduction of our high volume new model Monster S2R and high margin new 999", said Federico Minoli, President and CEO of Ducati Motor Holding. "Market environment and the continuous devaluation of the dollar turned 2004 into a more difficult year than anticipated. The good acceptance of our new products and the production start up in November of the new models will allow us to recover part of the losses before year end and to look with confidence to 2005". "Despite our forecast of a better fourth quarter, full year results are now expected to be lower than 2003 with unit sales decline of 5%, flat revenues at costant forex and a post-tax loss in the range of 6 Million Euro", said Enrico D'Onofrio, Chief Financial Officer of Ducati. "However we expect a recovery in sales in 2005 with a good EBITDA level, a return to profit and a lower net debt, fueled by the new entry level S2R, the Multistrada 620 and the already pre-sold Sport Classic line". As for the third quarter, revenues were Euro 47.0 million, down 36.0% excluding forex effects, (or down 37.6% including forex effects) over the same period in 2003, due to lower bike sales. Gross margin was 43.3% of revenues, up versus 37.7% in the same period a year ago, thanks to product costs and operational efficiencies. EBITDA resulted negative for Euro 1.9 million, versus a positive Euro 5.0 million of 2003 due to lower volume. In the third quarter of 2004, result before tax were a loss Euro 13.3 million versus a loss of Euro 5.4 million last year. The decrease was mainly due to lower EBITDA and higher financial charges. By the end of September 2004, the Company had re-purchased 3,325,995 shares, equivalent to Euro 3,545,511 or 2.09% of its stock capital. A discussion by Ducati management of the first nine months 2004 results is available at http://www.ducati.com/ under Company and then Investor Relations. It can be accessed until mid-December 2004 under "Webcast of Results" at the bottom of the IR Press Release Schedule section. Founded in 1926, Ducati builds racing-inspired motorcycles characterized by unique engine features, innovative design, advanced engineering and overall technical excellence. Ducati has won thirteen of the last fiftheen World Superbike Championship titles and more individual victories than the competition put together. The Company produces motorcycles in five market segments which vary in their technical and design features and intended customers: Superbike, Supersport; Monster, Sport Touring and Multistrada. The Company's motorcycles are sold in more than 60 countries worldwide, with a primary focus in the Western European and North American markets. For more information about the Company, please visit our web site at http://www.ducati.com/ This press release contains statements that are forward-looking and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated, as described in documents previously filed by the Company with CONSOB and with the U.S. Securities and Exchange Commission. DATASOURCE: Ducati Motor Holding S.p.A. CONTACT: For further information, please contact: Fabrizio Nardi, Director, Investor Relations, Ducati Motor Holding S.p.A., Via Cavalieri Ducati, 3, Bologna 40132, Italy, Main Tel: +39-051-6413-111, Direct tel: +39-051-6413-213, E-mail:

Copyright