BOLOGNA, Italy, August 3 /PRNewswire-FirstCall/ --
01/01/06-30/06/06 01/01/05-30/06/05 Var% Revenues 173.4 180.8
(4.1%) EBITDA 22.8 19.2 18.6% Net result 2.3 (3.5) Net Debt (33.4)
(116.3) (Million Euro) The Board of Directors of Ducati Motor
Holding S.p.A. (Borsa Italiana: DMH; NYSE: DMH) approved today its
financial results for the first half of 2006. First half 2006
revenues were Euro 173.4 million, down 4.1% compared to Euro 180.8
million over the same period in 2005. This was due to a reduction
in sales in motorcycles and spare parts, partially offset by a
positive bike mix and increased sales in accessories. Revenues from
motorcycles for the period decreased 4.7% to Euro 134.2 million and
accounted for 77.4% of revenues. 18.058 units were sold in the
period. Motorcycle-related products, including spare parts,
accessories and apparel, were down by 4.6% to Euro 36.6 million
over the comparable period in the previous year. Gross margin for
the first half of 2006 amounted to Euro 49.0 million or 28,2% of
revenues versus Euro 40.4 million or 22.3% in the first half of
last year, an increase which can be attributed to an improved bike
mix and reduced cost of goods. EDITDA was Euro 22.8 million or
13.1% of revenues for the first semester of 2006 against Euro 19.2
million or 10.6% of revenues over the same period last year, mainly
due to the improved product mix. Operating result (EBIT) for the
first half of 2006 amounted to Euro 12.5 million or 7.2% of sales
versus Euro 4.6 million or 2.5% of sales over the same period of
2005. At EBT level, the result was a profit of Euro 8.9 million
versus a loss of Euro 0.7 million over the same period last year.
Net result for the first semester 2006 was a profit of Euro 2.3
million compared to a loss of Euro 3.5 million in the first half of
2005. Company net debt at June 30, 2006 was Euro 33.4 million
versus Euro 116.3 million at June 30, 2005. For the first half of
2006, unofficial Ducati registrations were down by 2% over the same
period last year. Registrations in the US were up by 15%, in the
non-subsidiary countries by 7% and in Japan by 3%, while
registrations were down in France (-3%), Italy (-7%), Benelux
(-13%), Germany (-14%) and the UK (-25%). As of June 30, 2006 the
Company did not hold any treasury shares. Federico Minoli, Ducati
Chairman and Chief Executive Officer commented: "Despite the
planned reduction in volumes in terms of sales, we closed a first
semester 2006 with an improved operating margin. We are beginning
to see the results of the new strategy which sees Ducati focused on
the sale of models with higher margin. The main objective for the
coming months is to maintain a tight control on sales and
production in order to avoid excessive stock and to successfully
prepare for the launch of the new models". Enrico D'Onofrio,
Ducati's Chief Financial Officer added: "Thanks to the capital
increase which was subscribed to in full, Ducati is in a solid
financial position. As well as this, interest rates negotiated for
the bank financing are competitive with the best market conditions
and we can look ahead with confidence to the future commitments
necessary to implement the Company's relaunch plan". Founded in
1926, Ducati builds racing-inspired motorcycles characterized by
unique engine features, innovative design, advanced engineering and
overall technical excellence. The Company produces motorcycles in
six market segments which vary in their technical and design
features and intended customers: Superbike, Supersport, Monster,
Sport Touring, Multistrada and the new SportClassic. The Company's
motorcycles are sold in more than 60 countries worldwide, with a
primary focus in the Western European, Japan and North American
markets. Ducati has won thirteen of the last fifteen World
Superbike Championship titles and more individual victories than
the competition put together. Since 2003 Ducati has also been
taking part in the MotoGP World Championship. For more information
about the Company, please visit our web site at
http://www.ducati.com/ This press release is not an offer to invest
in Italy, according to Art. 1, lett (t) of the Italian Legislative
Decree no. 58 of February 24th, 1998, or in any other country. This
press release cannot be transmitted or distributed to any persons
in the United States or in any country where its distribution is
not allowed without the express approval from the relevant
authorities. These materials are not an offer of securities for
sale in the United States. Securities may not be offered or sold in
the United States absent registration with the United States
Securities and Exchange Commission or an exemption from
registration under the U.S. Securities Act of 1933, as amended. Any
public offering of the company's securities to be made in the
United States will be made by means of a prospectus that may be
obtained from the company and that will contain detailed
information about the company and its management, including
financial statements. Ducati Motor Holding S.p.A. and Subsidiaries
Net Sales and Shipment Data Six Months Ended Six Months Ended June,
30 June, 30 June, 30 June, 30 2006 2005 2006 2005 Net Revenues
(Euro in thousands, US$ in thousands) Motorcycle EUR 134,192 EUR
140,739 $ 170,598 $ 178,921 Spare Parts, Accessories, Apparel
36,604 38,387 46,535 48,801 Other 2,633 1,678 3,347 2,133 Total Net
Revenues EUR 173,429 EUR 180,804 $ 220,480 $ 229,855 Ducati Units
Motorcycle shipments: % Change North America 4,715 3,569 32.1% Main
European market 8,814 11,308 (22.1%) Japan 1,235 1,160 6.5% Rest of
World 3,294 3,991 (17.5%) Total 18,058 20,028 (9.8%) Motorcycle
product mix: % Change Superbike 2,583 3,780 (31.7%) Supersport 328
525 (37.5%) Sport Naked 10,667 10,482 1.8% Sport Touring 984 855
15.1% Multistrada 1,186 4,386 (73.0%) Sport Classic 2,310 0 n.a.
Total 18,058 20,028 (9.8%) Unofficial Motorcycle Registrations: %
Change North America 4,521 3,933 15.0% Main European market 11,913
13,187 (9.7%) Japan 1,449 1,408 2.9% Rest of World 3,680 3,439 7.0%
Total 21,563 21,967 (1.8%) Ducati Motor Holding Group Profit &
Loss (Euro in thousands, US$ in thousands, except for shares) Six
Months Ended Six Months Ended June, 30 June, 30 June, 30 June, 30
Percent 2006 2005 2006 2005 Change Revenues (net) EUR 173,429 EUR
180,804 $ 220,480 $ 229,856 (4.1%) Cost of goods sold (124,457)
(140,402) (158,222) (178,493) Gross Margin 48,972 40,402 62,258
51,363 21.2% Other operating revenues 17,519 17,543 22,272 22,302
SG&A expenses (54,297) (51,897) (69,028) (65,977) Other
operating income and expenses 350 (1,491) 445 (1,896) Operating
result 12,544 4,557 15,947 5,792 175.3% Financing expense, net
(3,598) (5,292) (4,574) (6,728) Profit/(loss)before income taxes
and min.interest 8,946 (735) 11,373 (936) (1317.1%) Income Tax
(6,684) (2,814) (8,497) (3,577)137.5% Net Result including minority
interests 2,262 (3,549) 2,876 (4,513)(163.7%) Minority Interests
(2) 0 (3) 0 Net Result for the Group 2,260 (3,549) 2,873
(4,513)(163.7%) Shares outstanding 320,687,920 159,360,037
320,687,920 159,360,037 Percent Other Financial Data Change
Motorcycles Produced (Units) 18,959 20,266 (6.4%) Motorcycles Sold
(Units) 18,058 20,028 (9.8%) Unofficial Registrations (Units)
21,563 21,967 (1.8%) EBITDA 22,752 19,179 28,925 24,381 18.6%
EBITDA Margin 13.1% 10.6% Note: On June 30, 2006 US$1 = 0,7866
Euros Ducati Motor Holding S.p.A. Consolidated Statements of
Operations Data (Euro in thousands, except per share and share
amounts) Period ended Period ended 30.06.2006 31.12.2005 EUR 000 %
EUR 000 % Current assets Cash and cash equivalents 133,761 53,017
Trade receivables, net 101,617 102,232 Inventories 83,977 81,380
Other current assets 10,528 9,217 Total current assets 329,883
60.1% 245,846 53.1% Non current assets Property, plant and
equipment -net 63,638 66,556 Goodwill and intangible assets with
indefinite useful lives 86,050 86,050 Other intangible fixed assets
net 46,324 39,665 Equity investments 20 20 Deferred tax assets
22,524 24,662 Other long-term assets 367 386 Total non current
assets 218,923 39.9% 217,339 46.9% Total assets 548,806 100%
463,185 100% Current liabilities Short-term bank borrowings 40,403
64,148 Accounts payable - trade 105,281 85,203 Income and other
taxes payables 7,936 5,537 Other current liabilities 26,379 20,202
Provisions for risks and charges - current portion 14,135 18,621
Total current liabilities 194,134 35.4% 193,711 41.8% Long-term
liabilities Long-term debt, net of current portion 126,804 125,824
Employee benefits 9,331 9,669 Deferred income taxes 15,938 13,697
Provision for risks and charges - long term portion 1,479 1,525
Total long-term liabilities 153,552 28.0% 150,715 32.5% Total
liabilities 347,686 63.4% 344,426 74.4% Shareholders' equity
Capital stock 163,311 82,867 Other reserves 75,214 75,559 Retained
earnings (losses) (39,684) 1,780 Results for the period 2,260
(41,464) Total Group Shareholders' equity 201,101 36.6% 118,742
25.6% Minority interests 19 17 Total liabilities and shareholders'
equity 548,806 100% 463,185 100% Ducati Motor Holding S.p.A.
Consolidated Statements of Operations Data (US$ in thousands,
except per share and share amounts) Period ended Period ended
30.06.2006 31.12.2005 $ 000 % $ 000 % Current assets Cash and cash
equivalents 170,050 67,400 Trade receivables 129,186 129,968
Inventories 106,760 103,458 Other current assets 13,384 11,718
Total current assets 419,380 60.1% 312,544 53.1% Non-current assets
Property, plant and equipment - net 80,903 84,613 Goodwill and
intangible assets with indefinite useful lives 109,395 109,395
Other intangible fixed assets - net 58,892 50,426 Equity
investments 25 25 Deferred tax assets 28,635 31,353 Other long-term
assets 467 491 Total non-current assets 278,317 39.9% 276,303 46.9%
Total assets 697,697 100% 588,847 100% Current liabilities
Short-term bank borrowings 51,364 81,551 Accounts payable - trade
133,844 108,318 Income and other taxes payables 10,089 7,039 Other
current liabilities 33,536 25,683 Provisions for risks and charges
- current portion 17,970 23,673 Total current liabilities 246,803
35.4% 246,264 41.8% Long-term liabilities Long-term debt, net of
current portion 161,206 159,960 Employee benefits 11,862 12,292
Deferred income taxes 20,262 17,413 Provision for risks and charges
- long term portion 1,880 1,939 Total long-term liabilities 195,210
28.0% 191,604 32.5% Total liabilities 442,013 63.4% 437,868 74.4%
Shareholders' equity Capital stock 207,617 105,349 Other reserves
95,620 96,058 Retained earnings (losses) (50,450) 2,263 Results for
the period 2,873 (52,713) Total Group Shareholders' equity 255,660
36.6% 150,957 25.6% Minority interests 24 22 Total liabilities and
shareholders' equity 697,697 100% 588,847 100% Ducati Motor Holding
S.p.A. Consolidated Statements of Cash Flow (Euro in thousands)
Period ended Period ended 30/06/2006 30/06/2005 EUR 000 EUR 000
Cash flow generated by operating activities Net profit (loss) for
the year 2,260 (3,549) Change in cumulative translation adjustment
(589) 1,443 Adjustments to reconcile net profit (loss) with the
movements of funds generated by (used in) operating activities -
Non cash items for stock options 394 645 - Amortisation,
depreciation 10,208 14,622 - Taxes paid (107) (307) Change in
operating assets and liabilities - Working capital 18,096 27,650 -
Other current assets (1,311) (392) - Other current liabilities
6,177 6,498 - Due to tax authorities 2,506 2,573 - Deferred tax
assets 3,572 (207) - Deferred tax liabilities 2,241 868 - Employee
benefits (338) 361 - Provisions for risks and charges 136 - -
Restructuring reserve (4,668) - - Other (3,219) Net cash generated
by operating activities (A) 38,577 46,986 Cash flow (used in)
generated by investing activities Net change in property, plant and
equipment (3,641) (4,176) Net change in intangible fixed assets
(10,441) (9,183) Disposal from property, plant and equipment 133
201 Other fixed assets 19 41 Net cash used in investing activities
(B) (13,930) (13,117) Cash flow generated from operating
activities, net of cash used in investing activities (A-B) 24,647
33,869 Cash flow (used in) generated by financing activities Change
in short-term and long-term debt (20,657) (29,825) Interests cashed
(paid) (2,108) 68 Change in minority interests 2 - Increase in
share capital and reserves 78,860 385 Change in cash generated by
financing activities 56,097 (29,372) Increase (decrease) in cash on
hand, bank deposits and securities 80,744 4,497 Cash and cash
equivalents, beginning of year 53,017 49,327 Cash and cash
equivalents, end of period/ year 133,761 53,824 Ducati Motor
Holding S.p.A. Consolidated Statements of Cash Flow (Dollar in
thousands) Period ended Period ended 30/06/2006 30/06/2005 $ 000 $
000 Cash flow generated by operating activities Net profit (loss)
for the year 2,873 (4,512) Change in cumulative translation
adjustment (748) 1,834 Adjustments to reconcile net profit (loss)
with the movements of funds generated by (used in) operating
activities - Non cash items for stock options 501 820 -
Amortisation, depreciation 12,977 18,589 - Taxes paid (136) (390)
Change in operating assets and liabilities - Working capital 23,005
35,151 - Other current assets (1,667) (498) - Other current
liabilities 7,853 8,261 - Due to tax authorities 3,186 3,271 -
Deferred tax assets 4,541 (263) - Deferred tax liabilities 2,849
1,103 - Employee benefits (430) 459 - Provisions for risks and
charges 173 - - Restructuring reserve (5,934) - - Other (4,092) Net
cash generated by operating activities (A) 49,043 59,733 Cash flow
(used in) generated by investing activities Net change in property,
plant and equipment (4,628) (5,309) Net change in intangible fixed
assets (13,274) (11,674) Disposal from property, plant and
equipment 169 255 Other fixed assets 24 53 Net cash used in
investing activities (B) (17,709) (16,675) Cash flow generated from
operating activities, net of cash used in investing activities
(A-B) 31,334 43,058 Cash flow (used in) generated by financing
activities Change in short-term and long-term debt (26,261)
(37,916) Interests cashed (paid) (2,680) 86 Change in minority
interests 2 - Increase in share capital and reserves 100,255 489
Change in cash generated by financing activities 71,316 (37,341)
Increase (decrease) in cash on hand, bank deposits and securities
102,650 5,717 Cash and cash equivalents, beginning of year 67,400
62,709 Cash and cash equivalents, end of period/ year 170,050
68,426 DATASOURCE: Ducati Motor Holding S.p.A. CONTACT: For further
information, please contact: Federico Strano, Director, Investor
Relations, Ducati Motor Holding S.p.A., Via Cavalieri Ducati, 3,
Bologna 40132, Italy, e-mail: , Main Tel: +39-051-6413-111, Direct
Tel: +39-051-6413-213
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