Trident Rowan Group, Inc. Reports Loss In Q3 1997
20 November 1997
Trident Rowan Group, Inc. Reports Loss In Third Quarter 1997
Revenues Increase Approximately 37%, Unit Motorcycle Sales Rise 33%,
Consumer Response to '98 Models is Strong
SOMERSET, N.J., Nov. 20 -- Trident Rowan Group, Inc.
today announced that in the fiscal quarter ended September 30,
1997, the company reported a loss of Lit. 4,110 million (US$ 2,385,000*) on
net sales revenue of Lit. 23,323 million (US$ 13,528,000). For the nine
months ended September 30, 1997, Trident Rowan Group (TRG) reported a loss of
Lit. 12,394 million (US$ 7,191,000*) on net sales revenue of Lit. 76,610
million (US$ 44,437,000).
The company stated that in the third quarter of this year, unit sales at
its motorcycle subsidiary, Moto Guzzi, increased by approximately 33%. TRG
attributed this rise to a combination of higher sales at Moto America, the
inclusion of Moto Guzzi France -- which reports higher sales prices than at
the factory -- and increased sales of larger, more expensive motorcycles.
Units manufactured also rose this quarter, totaling 1,277 motorcycles, up
approximately 16% from the corresponding period in 1996. During the third
quarter of this year, sales at TRG's steel tubing subsidiary, L.I.T.A., also
rose sharply -- up nearly 32%.
In making today's announcement, Howard E. Chase, President & Chief
Executive Officer of Trident Rowan Group, Inc., stated: "Despite the loss for
the period, TRG's momentum on several fronts is quite positive. Specifically,
we are pleased to report that Moto Guzzi sales and production were up strongly
this period. These results were achieved in a quarter that historically has
been a slow time for motorcycle sales due to the traditional August factory
closing."
Continued Mr. Chase, "It is important to note that implementing Moto
Guzzi's five-year growth plan is not without cost. Our investments in
increased outsourcing, product development, and upgrading and expanding middle
level management will continue to have significant impact on TRG results
through the remainder of 1997 and into early 1998. That said, our 1998 Moto
Guzzi product offerings are really beginning to generate very positive
consumer and trade response. At the recent Paris, Milan and Birmingham trade
fairs, Moto Guzzi presented its new V-11 1100 Sport motorcycle, the totally
redesigned V-10 Sport GT, and the new Quota 1100 ES -- all of which received
enthusiastic feedback and interest."
Mr. Chase also noted that TRG's steel tubing subsidiary, L.I.T.A.,
achieved significantly higher revenues this quarter, as pricing continued to
recover and margins improved.
Trident Rowan Group reported that margins during the third quarter of
1997 dropped slightly to 10.9%, versus 11.8% in the comparable period in 1996,
primarily due to increased material and variable production costs at Moto
Guzzi, which the company elected not to pass on to customers through increased
selling prices in favor of pursuing market share.
Trident Rowan Group, Inc. undertakes management interventions in troubled
businesses and businesses in transition with the specific objective of
building enhanced value. It owns Moto Guzzi, S.p.A., an Italian manufacturer
of luxury and high performance motorcycles, L.I.T.A. S.p.A., an Italian
manufacturer of specialty steel welded tubes used in the automotive and
furniture industries, and Temporary Integrated Management S.p.A., (TIM) which
provides senior temporary management services to troubled businesses and/or
businesses in transition, located primarily in Italy.
TRIDENT ROWAN GROUP, INC.
Operating Highlights
For the 3 months Ended September 30, 1997
3 Months 3 Months 3 Months 3 Months
30 Sept. 30 Sept. 30 Sept. 30 Sept.
1997 1996 1997 1996
Expressed in Expressed in
Millions of Italian Thousands of U.S.
Lire except Dollars except
net loss per share net loss per share*
Net sales Lit. 23,323 Lit. 17,042 $ 13,528 $9,891
Gross margin Lit. 2,548 Lit. 2,018 $1,478 $1,171
Operating
expenses, net Lit. (5,932) Lit. (3,987) $ (3,441) $(2,314)
Finance cost, net Lit. (45) Lit. (426) $(26) $(247)
Net Loss Lit. (4,110) Lit. (5,480) $ (2,385) $(3,180)
Net Loss per share ** Lit. (801) Lit. (1,155) $(0.46) $(0.69)
* Translated in U.S. dollar equivalents at the exchange rate prevailing at
September 30, 1997 of $1.00 : Lit. 1,724.
** Net loss per share calculated on the average number of shares outstanding
during the period
TRIDENT ROWAN GROUP, INC.
Operating Highlights
For the 9 months Ended September 30, 1997
9 Months 9 Months 9 Months 9 Months
30 Sept. 30 Sept. 30 Sept. 30 Sept.
1997 1996 1997 1996
Expressed in Expressed in
Millions of Italian Thousands of U.S.
Lire except Dollars except
net loss per share net loss per share*
Net sales Lit. 76,610 Lit. 66,043 $44,437 $38,872
Gross margin Lit. 10,148 Lit. 9,222 $5,886 $5,428
Operating
expenses, net Lit. (15,942) Lit. (12,854) $(9,248) $(7,566)
Finance cost, net Lit. (1,837) Lit. (1,564) $(1,066) $(921)
Net Loss Lit. (12,394) Lit. (9,835) $ (7,191) $(5,789)
Net Loss per share **Lit. (2,800) Lit. (2,073) $(1.62) $(1.22)
* Translated in U.S. dollar equivalents at the exchange rate prevailing
at September 30, 1997 of $1.00 : Lit. 1,724.
** Net loss per share calculated on the average number of shares
outstanding during the period
SOURCE Trident Rowan Group, Inc.
