EANS-Adhoc: KTM Power Sports AG
Restructuring Completed in Fiscal Year 2008-09
- Capacities Adjusted to Future Market Environment
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annual report
19.11.2009
Fiscal 2008-09 >> Turnover: EUR 454.6 million >> Vehicle sales: 64,080 >> Earnings after restructuring costs: EUR -81.4 million >> Equity ratio: 27.8% >> Positive operating result expected in fiscal 2009-10
Tough restructuring completed in fiscal year 2008-09 The past fiscal year proved to be the most difficult in KTM's recent history. However, KTM responded with strong restructuring measures. In fact, one-off restructuring costs account for 80% of the negative EBIT. Despite the slump in the markets, above all in North America and Europe, KTM succeeded in maintaining its market position and increasing market shares.
Capacities adjusted to future market environment Capacities and overheads have been realigned to the reduced market level. In the past fiscal year, KTM had to axe over 450 jobs and used the existing short time working schemes in the period from May through September.
X-Bow to remain in KTM product portfolio, investment completely written down Due to the economic crisis, the original business model of X-Bow serial production was no longer feasible. Marketing and sales activities are now therefore integrated in the Mattighofen plant. KTM has written down all the serial production development costs and production tools totaling EUR 33.1 million. In X-Bow production, KTM has opted for a model often used in the high-end sports car sector, namely manufacture to order and customization on request. This has resulted in a shift from serial production to building cars to each individual customer's specifications.
Outlook: positive operating result in fiscal year 2009-10 KTM is still expecting the motorcycle market in general to decline in the 2009-10 fiscal year. Thanks to new product developments, particularly in the profitable core segment of off-road competition, a slight increase in sales can however be anticipated. A completely new motocross generation will be rolled out at the end of the 2009-10 fiscal year. The new street models from the cooperation with Bajaj Auto Ltd. were presented to the public at the beginning of November. Given the cost cutting and optimization program, the Management Board is expecting a positive operating result and a substantial improvement in free cash flow.
The 2008-09 annual report, 2008-09 financial statements and 2008-09 corporate governance report are available for downloading on our website at www.ktm.com under Investor Relations > Investor Relations > Reports.
end of announcement euro adhoc
Further inquiry note:
KTM Power Sports AG
Mag. Wilfried Stock
Tel.: +43(0)7742/6000-216
mailto:wilfried.stock@ktm.com
Branche: Technology
ISIN: AT0000645403
WKN:
Index: mid market
Börsen: Wien / official market