Ducati Motor Holding Announces 15th Consecutive Quarter Record Revenue Growth
17 July 2000Reports 13% Second Quarter Topline Growth
BOLOGNA, Italy - Ducati Motor Holding S.p.A., a leading manufacturer of high performance motorcycles, today announced its consolidated revenues for the second quarter ended June 30, 2000. For the second quarter, total revenues increased 13.1% to Lit. 221.8 billion (US$109.5 million) from Lit. 196.1 billion (US$96.8 million) during the same period in the previous year. Revenues from Ducati motorcycles during the three-month period increased 11.0% to Lit. 186.7 billion over the same period last year and represented 84.2% of revenues. Second quarter revenues of motorcycle-related products, including spare parts, technical accessories and apparel, rose 24.0% to Lit. 31.5 billion over the comparable period in the previous year. For the first six months of 2000, total revenues increased 27.1% to Lit. 420.5 billion from Lit. 330.9 billion in the first six months of last year. First-half motorcycle revenues increased 22.1% to Lit. 351.9 billion over the first half of last year, and represented 83.7% of sales. First-half revenues from motorcycle-related products rose 44.3% to Lit. 55.0 billion over the same period last year. "We are proud of the continued strength of our sales during first half of 2000," said Carlo Di Biagio, Ducati Chief Financial Officer, "and this robust performance continues to indicate the success of our commercial strategies. Improving quality of service to attract new motorcyclists to Ducati is one of our key strategies. We are pleased to report that our after-sales service, having already been praised in the sector press in France and Germany, has recently been awarded second place in an independent July survey run by the leading Italian motorcycle magazine Motociclismo." While official six-month world registration data are not yet available, the Company's best estimates suggest that registrations increased over 20% during the first half compared to the same period a year ago, with particular strength in North America, France, Italy and Japan. Revenues from the first half of 2000 include a positive effect from favorable exchange rates generated by sales made in US Dollars and Pounds Sterling during the period. Given our policy of selling forward future cash flow, however, this will be counter-balanced by exchange losses on forward contracts. During the second quarter of 2000, new Ducati Stores exclusively selling Ducati motorcycles and accessories were opened, including one in Catania and a second store in Milan, bringing the total to 60 stores worldwide at half-end. Ducati Motor Holding will provide a detailed breakdown of sales in conjunction with its release of second quarter and first half 2000 earnings in mid-September. Founded in 1926, Ducati builds racing-inspired motorcycles characterized by unique engine features, innovative design, advanced engineering and overall technical excellence. Ducati has won eight of the last ten World Superbike Championship titles and more individual victories than the competition put together. The Company produces motorcycles in four market segments which vary in their technical and design features and intended customers: Superbike, Supersport, Monster and SportTouring. The company's motorcycles are sold in more than 40 countries worldwide, with a primary focus in the Western European and North American markets.