KTM: Weak U.S. Dollar Impacts Results

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KTM Power Sports AG says revenue for its fiscal third quarter, ended June 30, was €442.7 million, up 10.4 percent compared to last year's third quarter. However, the company says a "continuing weak U.S. dollar" brought EBIT to €7.7 million, down 70.3 percent compared to last year.

KTM says growth in revenue is primarily a result of the expected demand for the new LC4 models (690 Duke, 690 Enduro, 690 Supermoto Competition), the new LC8 models (1190 RC8 and 990 Supermoto) and higher sales in parts and apparel.

"The expansion of the model range and the high acceptance of the new products have lead to a pleasant increase in revenue. The weak U.S. dollar however will further impact on the EBIT for the current business year," says Stefan Pierer, CEO of KTM Power Sports AG.

Outlook
KTM says it expects motorcycle sales to climb double digits to about 95,000 units this year. Still, "due to the poor economic surrounding conditions" earnings are expected to be at 50 percent below last year's level, the OEM says.

KTM sold 90,306 bikes last year, up 7 percent from 83,985 units sold in the 2006 fiscal year.

The Austria-based manufacturer supplies 18 sales subsidiaries that distribute KTM products to 1,400 dealerships worldwide.