Ducati Motor Holding Announces Record First-Quarter Sales
29 April 1999Ducati Motor Holding Announces Record First-Quarter Sales
BOLOGNA, Italy, April 29 -- Ducati Motor Holding S.p.A. , a leading manufacturer of high performance motorcycles, announced record first-quarter 1999 sales. For the period ending March 31, 1999 sales reached Lit. 134.8 billion (69.6 million Euros), an increase of 13.2% over the first quarter last year. This gain was driven by an 11.7% overall increase in total units sold during the quarter, with unit growth in the key North American and European markets rising 29.7% and 12.5%, respectively. Although world registration data are not yet available, selected information and the Company's best estimates for the first quarter suggest that Ducati's motorcycle registrations rose 40% in the U.S., 49% in Germany and were stable in Italy, in line with Ducati's expectations. During the first quarter, 12 new DucatiStores were opened, exclusively selling Ducati motorcycles and accessories, bringing the total to 32 stores worldwide at the end of March. Store openings planned for the second quarter include: Seattle and Atlanta in the U.S., Naples, Italy and Frankfurt, Germany. Federico Minoli, President and Chief Executive Officer stated, "We are quite pleased with what is a record first quarter for us. The sales growth reflects growing consumer demand for our technologically-advanced bikes as well as the impressive growth of our racing-inspired apparel, accessories and spare parts businesses, which together complete the World of Ducati." First quarter sales of Ducati motorcycles were Lit. 120.2 billion, an increase of 13.6% over the first quarter last year, and represented 89.1% of sales. Shipments of Ducati motorcycles in the first quarter totaled 8,110 units, up 11.7% over last year. The increases came primarily from the Sport and Sport Touring segments. Sales of Ducati-related products, including spare parts, technical accessories and the newly-launched apparel line, rose 23.7% to Lit. 12.7 billion, compared to the year-ago period. "Our recent victories in the first two Superbike races of the year underscore Ducati's superior performance, and build additional momentum for the development of our global sports- oriented lifestyle," Mr. Minoli added. "As the year unfolds, we believe we are well-positioned to attain our growth objectives which include: achieving significant market share gains; deriving a greater percentage of revenues from related products; and posting significant total sales growth in 1999." Founded in 1926, Ducati builds racing-inspired motorcycles characterized by unique engine features, innovative design, advanced engineering and overall technical excellence. Ducati has won seven of the last nine 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: Hyper Sport, Super Sport, Sport Naked and Sport Touring. The Company's motorcycles are sold in more than 40 countries worldwide, with a primary focus in the Western European and North American markets. 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 the Company's prospectus dated March 23, 1999. Ducati Motor Holding S.p.A. and Subsidiaries Net Sales and Shipment Data Three Months Ended Three Months Ended March 31, March 31, March 31, March 31, 1999 1998 1999 1998 Net Sales (Lire in millions, Euros in thousands) Motorcycles Lit.120,161 Lit.105,801 Euros 62,058 Euros 54,642 Spare Parts, Accessories, Apparel 12,682 10,249 6,550 5,293 Miscellaneous Other 1,986 3,005 1,026 1,552 Total net sales 134,829 119,055 69,634 61,487 Ducati Units Motorcycle shipments: % Change North America 1,541 1,188 +29.7% Europe 6,131 5,451 +12.5% Japan 268 72 +272.2% Rest of World 170 547 -68.9% Total 8,110 7,258 +11.7% Motorcycle product mix: Sport Segment (Hyper & Super) 3,480 2,915 +19.4% Sport Naked 3,723 3,692 +0.8% Sport Touring 907 651 +39.3% Total 8,110 7,258 +11.7% Note: As of March 31, 1999, the U.S. $/Euro conversion ratio was 1.0762.