International Dealer News IDN 136 April/May 2017 | Page 19

KTM forecasting 300,000 unit sales by 2021

In guidance issued for investors at the beginning of February , KTM Industries AG , the holding company that controls the majority of the shares in KTM AG , the KTM and Husqvarna branded motorcycle production business , is projecting in the region 7 to 9 percent compound annual growth of revenue and production of some 300,000 motorcycles in 2021 ( including those made by Baja in India and elsewhere ) – close to a 50 percent increase on sales achieved in 2016 . Having made a successful primary listing debut on the Swiss Stock Exchange SIX in Zurich in November , as the second largest Austrian company listed there ( KTM Industries AG group shares can still be traded on the Vienna Bourse ), preliminary postings at the end of January show the group forecasting record results for 2016 . Revenues of 1,343.0 m euro are 10 percent up on 2015 ( 1,223.6 m euro ), with EBIT improved to 122.3 m euro (+ 8 percent from 112.9 m euro in 2015 ); the preliminary result after taxes increased from 65.0 m euro to 83.8 m euro (+ 29 percent ). In 2016 all operational divisions are said to have increased revenues as well as earnings . Combined KTM and Husqvarna motorcycle sales are put at 203,340 units for the twelve months , leaving KTM again claiming number one spot in manufacturing terms in Europe ( in terms of units ), ahead of BMW and Ducati [ and Piaggio in terms of in-class motorcycles produced in Europe ] and able to say that it is also “ the fastest growing motorcycle brand worldwide . The export ratio is sustainably over 95 %, with more than 50 % sold outside Europe ”. The Pankl Racing Systems AG division closed 2016 with record results due to a very strong fourth quarter , with the new Formula 1 regulations bringing a further boost – KTM took its shareholding in Pankl from 55.9 percent to 94.5 percent by the end of 2016 . In 2016 WP AG “ equipped a new setup with updated exhaust production at its Munderfing , Austria facility , completing its long-term modernisation project . Through the closer connection to KTM AG , further growth of the vehicle group is secured . The group hired an additional 516 employees in 2016 , 428 of them in Austria , taking the group ’ s global

Husky + 43 percent in 2016

Husqvarna has recorded a third consecutive year of record breaking sales , reaching total global sales of 30,700 units during the 12 months to December 31st 2016 – putting unit and turnover growth at + 43 percent . In fact , the business has come close to doubling both their production and turnover in the last two years . This result follows the 32 % gain in bikes sales during 2015 and “ underlines the brand ’ s positive strategy of growth . Generating the largest ever turnover in the brand ’ s history at the end of 2015 , Husqvarna ’ s annual , worldwide turnover increased significantly in 2016 , reaching more than 200 million euros ”. 2016 saw Husqvarna successfully launch the employee head count to 5,069 people , 3,916 of them in Austria and about 15 % of the total described as being in R & D roles . The group made total investments of 144 m euro in 2016 , in model development , operating facilities and infrastructure , including the exhaust production and motorsports centre in Munderfing , Austria , the extension of the production capacities in the KTM headquarters in Mattighofen and their new high performance drivetrain production facility at Pankl in Kapfenberg . The business year under review was also characterised by additional acquisitions of shares in Pankl Racing Systems AG , which thereby strengthens its strategic position effectively within the KTM Industries Group . KTM Industries AG increased its current share in Pankl Racing Systems AG from previously 55.9 % to 94.5 %. Based on the order situation at the end of January , the company said that it expects further organic growth in its core areas in 2017 , with investment in new models , infrastructure and development further increased .
all-new 2017 line-up of FE and TE Enduro models . In addition , the new 701 Enduro and 701 Supermoto models “ with the latest classleading engine technology ” were also released during the second half of the year . Husqvarna completed their range of motocross bikes with the introduction of the 2016 TC 50 and TC 65 models . Together with the TC 85 and an extensive line-up of full-sized 2-stroke and 4-stroke models , Husqvarna now offers a complete range of nine motocross bikes . In 2016 Husqvarna also unveiled the serial production version of the VITPILEN 401 and the SVARTPILEN 401 – the brand ’ s first “ Real Street ” motorcycles , slated for showroom availability late 2017 . news ROOM

KTM Motorsport

Among the investments made in 2016 was completion of an all-new 12m euro race department facility , opened in October 2016 . The company says that since its first World Championship title in 1974 ( Gennadij Moiseev , MX 250 ), the brand has up to now earned 269 more World Championship titles and 15 consecutive Dakar Rally victories . “ In the last two seasons we have taken the final big title in off-road motorsports , first place in the Supercross World Championship ; now , after an early victory in the 2016 Moto3 World Championship , KTM is entering Moto2 in 2017 - the intermediary category of road racing and the next step towards the premiere MotoGP class ”. Stefan Pierer , CEO of the KTM Group , said : “ In 1992 KTM Racing was still a single small workshop , and successfully tackled Rally and Motocross alongside the initial niche of Enduro under the strong leadership of Heinz Kinigadner . Meanwhile , since Pit Beirer took over our motorsport in 2006 , the team has grown to more than 300 employees worldwide and employs more than 60 factory riders . Five percent of our annual sales revenues flow into our motorsport operations , and we are Europe ’ s biggest sport motorcycle manufacturer ”.
With an area of 18,000 sq m , KTM ’ s new Motorsport facility is located directly behind KTM ’ s engine factory in Munderfing and is flanked by the new KTM Logistic Center and the WP Group
INTERNATIONAL DEALER NEWS - APRIL / MAY 2017 19