Ducati Rebounds to Profitability in 2007

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Ducati says it achieved a net profit of €13.3 million ($20.8 million) in 2007, up from a loss of €8.5 million in 2006. The Italian motorcycle manufacturer says revenue was €397.7 million ($622.3 million), up 30.5% compared to €304.8 million in 2006.

Ducati motorcycle revenue was €317.3 million ($496.3 million), up 13.4% from cycle-related revenue of €237.7 million in 2006. Revenue from spare parts, accessories and apparel totaled €72.8 million ($113.9 million), up 27% from PG&A revenue of €57.3 million in 2006.

The manufacturer shipped 38,365 motorcycles to dealers in 2007, up 18.7% from shipments of 32,312 units in 2006. Unofficial worldwide registrations in 2007 totaled 40,789 units, up 16.2% from registrations of 35,095 units in '06.

The OEM says registrations increased 22.4% in the United States; 36% in the United Kingdom; 10.7% in Germany; 10.4% in Italy and 28.7% in non-subsidiary countries. Registrations decreased 2.7% in Japan and 0.6% in France.

Ducati executives say the greater number of registrations versus shipments generated a further network stock reduction of 2.400 bikes, in line with company expectations.

"The results act as confirmation of the success of the ongoing actions aimed at improving both Ducati Motor Holding's competitive position, and its organizational and industrial process restructuring," Ducati CEO Gabriele Del Torchio said following a March 18 meeting of the Ducati board of directors.

"2007 signals the closure of a cycle characterized by the restructuring plan that began in 2005 and, thanks to the recovered financial strength, we can now start a new cycle," says Enrico D'Onofrio, CFO.

As previously reported, Ducati's 2008-2010 Industrial Relaunch Plan is based on three strategic guidelines: product development and innovation, reinforcement of the network and efficiency of processes and company structure.

Adds D'Onofrio: "Despite the unfavorable international scenario we are looking positively to the future and we are confident that 2008 will be even better than 2007 and have challenging but achievable goals: revenue growth of 15%, EBITDA of 15% of revenues and a positive net financial position."

Ducati Shipments, 2007 versus 2006
North America…10,110 units, up from 8,269 units
Europe…17,539 units, up from 15,544 units
Japan…2,200 units, down from 2,361 units
Other…8,516 units, up from 6,138 units

Ducati Registrations, 2007 versus 2006
North America…10,019 units, up from 8,186 units
Europe…20,000 units, up from 17,861 units
Japan…2,702 units, down from 2,777 units
Other…8,068 units, up from 6,271 units