Earnings Release • Aug 27, 2018
Earnings Release
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publication: 27.08.2018 17:35 source: http://adhoc.pressetext.com/news/1535384100837 keywords: KTM Industries AG / semiannual result / update guidance
Public disclosure of inside information according to article 17 MAR
Wels (pta034/27.08.2018/17:35) - Motorcycle sales: 126,808 / + 15% to previous year - Revenues: 821.8 mEur / +8% % to previous year
KTM Industries- Group confirms the preliminary result which was published on July 26, 2018 for the first half year 2018. With record sales of more than 126,808 motorcycles, KTM Industries-Group achieved revenues in the amount of 821.8 mEur in the first half year of 2018 (+8%) after 758.8 mEur in the previous year. The operating profit (EBIT) for the first half of 2018 amounts to 78.4 mEur compared to 65.8 mEur in the previous year (+19%). The effect on the results from the sale of the Pankl-Group amounts to approximately 26 mEur. The EBIT margin - adjusted for the Pankl effect - of 6.4% is higher than planned, taking into consideration four effected starts of production. The earnings before interest, taxes, depreciation and amortization (EBITDA) amounting to 126.2 mEur exceed the figure of the previous year of 105.8 mEur. As a result of the sale of the Pankl-Group (1,800 employees) to the Pierer Industrie-Group, the number of employees at the KTM Industries-Group changed to 4,334 as of June 30, 2018.
On June 26, the Pankl-Group was sold to the Pierer Industrie-Group for a purchase price of 130.5 mEur. The sale of Pankl provided the strategic and financial basis for KTM Industries-Group's even greater focus on the two-wheeler industry, particularly the development of low-power electro-mobility, over the next few years. As a result of the cash inflow from the sale, the perpetual bond in the amount of 60 mEur was repaid. Due to the deconsolidation of Pankl, the financial liabilities were relieved by further 100 mEur and the balance sheet structure was strengthened.
Investments in research and development in the first half of 2018 amounted to 37.9 mEur (H1 2017: 32.4 mEur), whereas investments in infrastructure declined. The intensive investment program that has taken place in recent years results in a further decrease in this area. In total, investments in the first half of 2018 amount to 96.2 mEur (previous year: 87.6 mEur). The expansion of the research and development center at the Mattighofen site with an investment volume of approximately 30 mEur was completed in the second quarter of 2018.
For the second half of 2018, the Group expects a continuing positive growth trend as in the first half of the year. In the business year 2018, KTM Industries-group focuses on organic growth in its core segment through further increase of market shares and global expansion. On the basis of the half year result 2018 and due to the sale of the Pankl-Group, the guidance was updated and is available on the website:
For the 2018 financial year, the Executive Board expects a consolidated revenue of Eur 1.570 billion and an operating EBIT of more than Eur 160 million. The Net Debt/EBITDA-ratio is expected to improve to a range between 1.0 - 1.2x.
The KTM Industries Group is the biggest European motorcycle producer and focuses on highly innovative sport motorcycles and electro mobility. With its worldwide renowned brands KTM, Husqvarna Motorcycles and WP, the group is in its segments among the technological and market leaders. Within the group there is a high degree of technological network, which is, in this form, unique in Europe. Strategic partnerships at an operational level strengthen the competitiveness in our respective markets. All these factors are the basis for the high innovation level of the KTM Industries-Group and ensure a sustainable organic growth.
| Earnings figures | H1 2017 | H1 2018 | Change in % | |
|---|---|---|---|---|
| Revenues | mEur | 758.8 | 821.8 | 8% |
| EBITDA | mEur | 105.8 | 126.2 | 19% |
| EBIT | mEur | 65.8 | 78.4 | 19% |
| EBITDA-margin | in % | 13.9% | 15.4% | |
| EBIT-margin | in % | 8.7% | 9.5% | |
| Balance sheet | 31.12.2017 | 30.06.2018 | ||
| figures | ||||
| Balance sheet total | mEur | 1,465.2 | 1,425.6 | |
| Equity | mEur | 528.6 | 490.9 | |
| Equity ratio | in % | 36.1% | 34.4% | |
| Net debt | mEur | 375.0 | 382.9 | |
| Gearing | in % | 70.9% | 78.0% | |
| Employees | 5,887 | 4,334 | ||
| H1 2017 | H1 2018 | |||
| Investments | mEur | 87.6 | 96.2 |
| Key figures H1 2018 of KTM Industries-Group (consolidated) |
|---|
| ------------------------------------------------------------ |
The half year report of KTM Industries AG is available as of now on the website of the company under the link http://www.ktmindustries.com/index.php/en/ir/berichte/interimreports. The updated guidance is also available on the website under the link http://www.ktm-industries.com/index.php/en/company/keyfigures.
| emitter: | KTM Industries AG Edisonstraße 1 4600 Wels Austria |
|
|---|---|---|
| contact person: | Mag. Michaela Friepeß | |
| phone: | +43 7242 69402 | |
| e-mail: | [email protected] | |
| website: | www.ktm-industries.com | |
| ISIN(s): | AT0000500913 (bond), AT0000A0WQ66 (bond), AT0000A1MBL8 (bond), AT0000KTMI02 (share) |
|
| stock exchanges: | official trade in Vienna; open market (free market) in Frankfurt |
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