KTM returns to profitability - Amazing Q3 2010 financial results
The Austrian manufacturer has just released third quarter results for the 2009-10 financial exercise, and the numbers point towards a fantastic turnaround from the bad old days for 2008-09.
Here are a few key quotes from the Q3 2009-10 report, i.e. the first 9 months of their fiscal year.
In the first three quarters of 2009/10, we increased profits after interest and taxes by EUR 70.7 million, to EUR 3.9 million compared to last year (A loss of EUR 66.8 million). This positive development can be mainly attributed to the strict austerity drive and the focus on our core business. (Moto123.com Italics)
Due to sales slightly below last year’s level of 43,189 vehicles (previous year: 46,275 vehicles), turnover decreased by EUR 25.2 million to EUR 318.3 million compared to last year (EUR 343.5 million).
In the first three quarters of 2009/10 the number of registrations in the European market fell by 14.3 % to 396,577 vehicles compared to last year, while we were able to keep our market share on the overall European market at a level of 4.3 %.
The number of registrations on the US market dropped in the first three quarters of 2009/10 by 17.8 % to 283,549 vehicles compared to last year. In the US we increased our market share to 2.5 % (+0.2 percentage points compared to last year).
In the first three quarters of 2009/10, we sold 37,425 full size motorcycles (+484 motorcycles compared to last year).
In the first three quarters of 2009/10, we sold 87 X-Bow sport cars (-162 units compared to last year).
The key message here is that KTM took some serious restructuring losses in 2009, such as a 25% reduction in employees, the apparent stoppage of the X-Bow project and several plant reorganisations. The resulting cost reductions have allowed KTM to return to profitability in 2010 despite decreased sales so far this year.
The new mean and lean KTM has more great reasons to anticipate a better future, with constant growth in the road bike segment, and new growth areas in emerging nations, with Brazil in the gun sights for next year.
Things are back to good in Austria…