KTM keeps running

KTM Power Sports AG, one of the world-wide leading manufacturers of off-road and on-road motorcycle, ATVs and the sports car X-Bow, started full throttle into the business year 2007/08. During the first quarter of business year 2007/08, revenue increased by 15.3% to EUR 149.4 mln and EBIT rose by 64.7% to 18.9 mln compared to last year.

The profit per share doubled to reach 2.18 EUR.

The growth in revenue has been significantly influenced by increased sales in the Enduro Racing segment, higher revenues from related products (spare parts, power wear and power parts), as well as increased sales of OEM (Original Equipment Manufacturer) engines.

In the first quarter of business year 2007/08, KTM launched its first Superbike the 1190 RC8 at the international motorcycle show EICMA in Milan. The response exceeded the expectations. Furthermore, the Dual-Sport segment has been broadened by a 690cc Enduro, the Supermoto segment by a 690cc and a 990 cc model.

For strategic reasons, KTM sold the WP group to CROSS Automotive GmbH. Being independent from KTM should allow the WP group in the future to fully explore its potential, the third party business with suspension elements. The KTM group shall continue to use WP suspension components on its products.

Due to the expansion of the product range in the Off-Road and street segments, further increase in sales is also expected in the current business year. The growing demand for OEM engines and Related Products shall also contribute to a successful business year. The assembly plant for the X-Bow in Graz will be ready to be moved into this Spring and the first vehicles shall be delivered this very business year. Due to the continuously weak USD, the margin situation will worsen. Price adjustments and a selective product policy in North America shall partially compensate the negative exchange rate influences.

KTM Power Sports AG is a worldwide leading manufacturer of power sports vehicles. KTM has won more than 136 World Championship titles and seven times the Rallye Paris-Dakar. The operational core company, KTM-Sportmotorcycle AG, develops and manufactures competition off-road and street motorcycles.

KTM-Sportcar GmbH builds the light-weight sports car X-Bow, the company’s first step into the automotive field.