International Dealer News IDN 147 February/March 2019 | Page 16

news ROOM
KTM posts record results for eighth
BRIEFS consecutive year
NEWS
The work of the Connected
Motorcycle CMC continues, with
the objective being to make sure
that the “very different riding
dynamic and behaviour of
motorcycles” are integrated into
the moves to see cars and other
four-wheel traffic embrace
Vehicle-to-Vehicle (V2V)
Cooperative Intelligent Transport
System (C-ITS) collision avoidance
and traffic flow technology. In
2014 all the motorcycle
manufacturing members of ACEM
committed to introducing at least
one model equipped with C-ITS
functionality by the year 2020.The
CMC was founded in 2016 by
BMW, Yamaha and Honda; since
then Kawasaki, Suzuki, KTM and
Ducati have also joined.
Yamaha posted net motorcycle sales
revenue of 770.3bn yen for its Q3
ended September 30, 2018, down by -
1.5% (-11.8bn yen), with operating
income down by -16.7% (to 45.3bn
yen). Emerging markets such as
Indonesia and the Philippines saw
growth in unit sales; developed
markets saw a decline in unit sales and
sales income. Overall corporate net
sales were 1,262.0bn yen (+11.3%).
Total unit sales in Europe for the 9-
month period were 145,000 down
from 170,000 for the year ago period.
Total global unit sales were 4,015,000
units, up from 3,914,000.
BC Battery Controller, the
motorcycle division of Italian
manufacturer Forelettronica, has
opened a new flagship store in
Thailand (Bangkok). “The new
point of sale represents a further
step for BC in the
internationalisation of the brand,
which is already present in 40
countries worldwide,” said
Marketing Manager Giovanni
Foresti.
KTM Industries AG, parent
company of KTM Motorcycles,
sold 261,454 motorcycles in
2018, which is +10% over 2017
and an eighth consecutive
record year as the Austrian
manufacturer confirms its
position as Europe’s largest
motorcycle maker and continues
to close in on its previously
announced target of achieving
production of 400,000 units in
2022.
Sales revenues were +2% on
2017 at 1,560m euro, with EBIT
(Earnings Before Income Tax) up
by +21% to 161m euro despite
making some 184m euro capital
investments in its Austrian sites
during the year. KTM recorded a
130.5m euro benefit from the
sale of the Pankl-Group to CEO
Stefan Pierer’s Pierer Industrie
Group in June 2018, further
strengthening the balance sheet
structure and reducing net debt.
The company says it achieved
“above average market share
increases in the key markets”
with both the KTM and
Husqvarna brands, with KTM
registrations of
+21.5% corresponding
to a market share of
11.7% at the end of
2018. In the overall declining US
market in 2018 (-2.3 %) KTM
increased registrations by
+8.5% and increased their
market share to 8.9% at the end
of 2018 – citing the new
launches of the KTM
middleweight class Duke 790
and the first Husqvarna street
motorcycles (401
Svartpilen/Vitpilen and 701
Vitpilen) as proving popular in
the United States.
KTM sold 212,899 motorcycles
and Husqvarna 48,555 in the
financial year 2018.
Of the investments in their
Austrian operating sites, around
106m euro was invested in
product development (including
tooling) for further future
growth, and around 78m euro
went into plants and
infrastructure - including the
expansion of the R&D center in
Mattighofen. By the end of
2018 KTM’s employee count
was up to 4,300, with 3,625 of
them in Austria.
For 2019 KTM says it will
“continue to focus on organic
growth in all core areas. The
objective is to further expand
market shares in the markets
that are important for KTM and
Husqvarna - despite the
challenging market
environment. Shifting the
production of the Husqvarna
street motorcycles (up to 400
cc) to our strategic partner Bajaj
(in India) in Q4/2019 also gives
us the opportunity to produce
Husqvarna entry-level
motorcycles at competitive
manufacturing costs, thus
further increasing sales in the
emerging markets.
“In addition, due to the strong
growth of the electric bike joint
venture, PEXCO, located in
Schweinfurt, Germany, full
consolidation is already planned
for 2020/21”.
Kawasaki Q3: unit sales
up in “developed markets”
Kawasaki has released its financial
performance details for Q3 and first
nine months (the period ending
December 31st) of its ’18-‘19
financial year, and in motorcycle
division terms reports “moderate
growth” continuing, mainly in
Europe, but is seeing “decreasing
demand” for their product offer in
emerging markets - though the
cycle of decline Kawasaki has been
locked into in emerging markets in
recent years appears to be
bottoming out.
In its utility vehicle markets the
company reports that stable growth
continues, mainly in North America.
In unit terms Kawasaki shipped
100,000 units to its developed
markets in Q3 (worth 78.8bn yen),
and 253,000 units in emerging
markets (60.1bn yen), for a global
total of 400,000 units in Q3 (worth
226.2bn yen).