Trident Rowan Group, Inc. Reports Q1 Sales
6 May 1998
Trident Rowan Group, Inc. Reports First Quarter 1998 Sales Up 40% as Loss Narrows and Margins Increase
Momentum and Results at Moto Guzzi Continue to Build
as Factory Shipments Rise 50%
SOMERSET, N.J., May 6 -- Trident Rowan Group, Inc.,
today reported that in the fiscal quarter ended March 31, 1998,
net sales at the company increased approximately 40%, to Lit. 33,106 million
(US$ 18,160,000) versus Lit. 23,690 million (US$ 12,995,000) in the same
period last year. The company also reported that margins in the first quarter
of 1998 doubled as compared to the first quarter of 1997.
For comparison purposes, 1997 first quarter results were positively
impacted both by favorable currency exchange gains as well as a one-time
settlement with a third party entity. In the first quarter of 1998, Trident
Rowan Group, Inc. reported a net loss of Lit. 2,218 million (US$ 1,217,000*)
versus a net loss of Lit. 2,564 million (US$ 1,406,000) in the same period
last year.
In making today's announcement, Mark S. Hauser, President and CEO at
Trident Rowan Group, Inc. stated, "Top line results, and overall momentum at
Trident Rowan Group, clearly indicate that the company is moving forward in a
very positive direction-and one that we believe is highly encouraging for the
remainder of the year." Mr. Hauser cited that factory shipments of high-
performance motorcycles from the company's Moto Guzzi S.p.A. subsidiary,
located in Italy, increased by more than 50% in the first quarter of 1998
versus the same period last year. At the same time, margins at Moto Guzzi
also increased, enabling that subsidiary to achieve an operating profit in
this quarter, as compared to a loss in the first quarter of 1997. "In short,"
continued Mr. Hauser, "Moto Guzzi is operating more efficiently, shipping more
units, and achieving increased sales results. That trend is precisely what we
are striving to continue and accelerate at Trident Rowan Group."
Trident Rowan Group, Inc. also reported that to support the rapid growth
and planned expansion at Moto Guzzi, research and development, as well as
select sales, general and administrative expenses, principally for management
personnel, increased during the first quarter of 1998 in comparison to the
first quarter of 1997.
Also commenting on today's announcement was Trident Rowan Group, Inc.
Chairman, Howard E. Chase, who stated, "Within the last year, Trident Rowan
Group made an important strategic decision and firm commitment to focus
substantially all of the company's resources in support of enhancing the value
of Moto Guzzi. Today's results confirm that our renewed efforts are beginning
to produce positive results and increased market share."
Mr. Chase also underscored two recent developments at Moto Guzzi to build
further momentum. First, Moto Guzzi recently signed an agreement with Piaggio
S.p.A. for the development and manufacture of four stroke engines for new
motorcycles being developed by Moto Guzzi specifically for urban transport and
"sports" applications. Second, Moto Guzzi recently signed an agreement to
purchase a factory located in Monza, Italy, from Philips S.p.A., which will
provide a large, modern manufacturing facility that is better configured and
offers Moto Guzzi significant technological advantages over its present
location in Mandello, Italy. "This facility," explained Mr. Chase, "is
particularly well suited to accommodate Moto Guzzi's plans to increase
motorcycle production to 20,000-25,000 units by the year 2001."
For the first quarter of 1998, Trident Rowan Group, Inc. also reported
that corporate sales, general and administrative expenses were reduced by more
than 24%. Additionally, revenues at other operating units were significantly
higher than the comparable 1997 quarter. The company indicated that it plans
to continue this type of streamlining approach throughout the remainder of the
year.
The portions of this news release that relate to future plans, events or
performance are forward-looking statements. Investors are cautioned that all
such statements involve risks and uncertainties, including announcements by
the company's competitors, an intensely competitive market and market
acceptance of new products. Actual results, events or performance may differ
materially. These forward-looking statements speak only as of the date hereof.
The company undertakes no obligation to publicly release the result of any
revisions to these forward-looking statements that may be made to reflect
events or circumstances after the date hereof or to reflect the occurrence of
unanticipated events.
TRIDENT ROWAN GROUP, INC.
Operating Highlights
For the 3 months Ended March 31, 1998 and 1997
3 Months 3 Months 3 Months 3 Months
31 March 31 March 31 March 31 March
1998 1997 1998 1997
Expressed in Millions of Expressed in Thousands
Italian Lire except of U.S. Dollars except
net loss per share net loss per share*
Net sales Lit. 33,106 Lit. 23,690 $ 18,160 $ 12,995
Gross margin Lit. 5,920 Lit. 3,397 $ 3,247 $ 1,863
Operating loss Lit. (389) Lit.(2,050) $ (213) $(1,125)
Finance costs, net Lit. (634) Lit.(1,020) $ (348) $ (560)
Net loss Lit.(2,352) Lit.(2,564) $(1,290) $(1,406)
Net loss per share ** Lit. (472) Lit. (657) $ (0.26) $ (0.36)
* Translated in U.S. dollar equivalents at the exchange rate prevailing
at March 31, 1998 of $1.00 : Lit. 1,823.
** Net loss per share calculated on the average of shares outstanding
during the period
SOURCE Trident Rowan Group, Inc.