KTM earnings

endurox
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Edited Date/Time 6/18/2015 9:02am

KTM Reports Earnings Results for the Fiscal Year 2015
May 22 15

KTM reported earnings results for the fiscal year 2015. The company's motorcycle sales grew 28% to 0.158 million units during 2014 with turnover growing at 21% to EUR 864.6 million and PAT at EUR 57.2 million, growth of 57%.

http://www.bloomberg.com/research/stocks/snapshot/snapshot_article.asp?…
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Holigan
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6/17/2015 11:31am Edited Date/Time 6/17/2015 11:31am
Definitely what investors wants to see:

NET INCOME 2011 - $20.7M 2012 - $25.3M 2013 - $36.4M 2014 - $57.0M
6/17/2015 12:14pm Edited Date/Time 6/17/2015 12:17pm
Nice results for sure. Reducing COGS, keeping expenses in line and +20% growth in turnover are all the right metrics.

Assuming static overall market growth YoY, the question is, did the competition (Jap Big 4) care about the loss of 148M euro in market share? As that slice of the pie is largely particular to competition bikes, it would seem to be an even larger achievement for KTM as they have focused on this niche with admirable results.
MXD
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6/17/2015 12:19pm
I'm pretty sure that I'll be adding some of my hard earned money to their reports for this year. I was a hold out but I'm about to drink the orange cool-aid.
takitimu
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6/17/2015 12:47pm
Holigan wrote:
Definitely what investors wants to see:

NET INCOME 2011 - $20.7M 2012 - $25.3M 2013 - $36.4M 2014 - $57.0M
The trend is nice, but I think investors would be looking at the %, going from 3.9% to 6.6% is nice ( for comparison GM is 2.6% ).

I think with the integration of Husqvarna & dropping of Husaberg, it's pretty impressive, though I'd suspect analysts would be wondering when/if there is a reduction of COGS as volume goes up, revenue went up 64% but COGS only dropped 2%.

The Shop

6/17/2015 12:56pm Edited Date/Time 6/17/2015 12:57pm
takitimu wrote:
The trend is nice, but I think investors would be looking at the %, going from 3.9% to 6.6% is nice ( for comparison GM is...
The trend is nice, but I think investors would be looking at the %, going from 3.9% to 6.6% is nice ( for comparison GM is 2.6% ).

I think with the integration of Husqvarna & dropping of Husaberg, it's pretty impressive, though I'd suspect analysts would be wondering when/if there is a reduction of COGS as volume goes up, revenue went up 64% but COGS only dropped 2%.

Yup, COGS will likely rise as KTM begins differentiating the Husky line and looks to shed the "white KTMs" moniker. The million dollar question is, how much will the financial implications drive the decisions of how to re-engineer Husqvarna vs. the superior engineering itself driving the financial implications...

endurox
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6/17/2015 1:04pm
52% of KTM sales last year were street bikes. Since street bikes don't need a face lift every 3 years to keep the riders happy, the margins should be higher than dirt bikes. Took a 390 Duke out for a test the other day, fun bike and especially for 5k$.
Would like to see what the total sales of each model KTM are for the year. The pumpkin patch is growing.
moto0852
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6/17/2015 1:43pm Edited Date/Time 6/17/2015 1:51pm
It really is an impressive set of results considering the industry it competes in against the companies it does with product that doesn't always have the best of margins.

Still waiting for the post in this tread of "Honda made more profit than that from generator sales."
Not everyone likes a winner.
dak446
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6/17/2015 2:03pm
endurox wrote:
52% of KTM sales last year were street bikes. Since street bikes don't need a face lift every 3 years to keep the riders happy, the...
52% of KTM sales last year were street bikes. Since street bikes don't need a face lift every 3 years to keep the riders happy, the margins should be higher than dirt bikes. Took a 390 Duke out for a test the other day, fun bike and especially for 5k$.
Would like to see what the total sales of each model KTM are for the year. The pumpkin patch is growing.
I agree with your second to last sentence.

More specifically, I'd like to see how much of their gross revenue is attributed to mini-models. While they don't have the market completely cornered, KTM has had more 50's and 60's on the track than any other brand for many years. I think this would not only be a good indicator for how much of the brand's success relies on this portion of the market, but more generally speaking, the health of the sport (i.e. if this portion is growing, so likely is the sport - the same goes for shrinkage).
Krazyk2774
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6/17/2015 2:08pm
I'm a long time Yamaha fan, but I bought a KTM for the last bike simply because none of the Japanese brands produced what I was looking for. I have been very impressed with the 500 exc ! two years of riding, and not one problem so farSmile
Starcrossed
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6/17/2015 2:18pm
MXD wrote:
I'm pretty sure that I'll be adding some of my hard earned money to their reports for this year. I was a hold out but I'm...
I'm pretty sure that I'll be adding some of my hard earned money to their reports for this year. I was a hold out but I'm about to drink the orange cool-aid.
Good choice...don't know where you live, but consider Cliff's Cycle in Norfolk, if you're going to purchase new. They're strictly KTM and very reasonable, as well as knowledgeable about the bikes. They sponsor a few events around the state as well. Hopefully they'll have the bike you're looking for in stock, if not, Valley will. KTM dealers are few and far between in these parts, compared to the Japanese brands.
TeamGreen
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6/17/2015 2:27pm
takitimu wrote:
The trend is nice, but I think investors would be looking at the %, going from 3.9% to 6.6% is nice ( for comparison GM is...
The trend is nice, but I think investors would be looking at the %, going from 3.9% to 6.6% is nice ( for comparison GM is 2.6% ).

I think with the integration of Husqvarna & dropping of Husaberg, it's pretty impressive, though I'd suspect analysts would be wondering when/if there is a reduction of COGS as volume goes up, revenue went up 64% but COGS only dropped 2%.

Yup, COGS will likely rise as KTM begins differentiating the Husky line and looks to shed the "white KTMs" moniker. The million dollar question is, how...
Yup, COGS will likely rise as KTM begins differentiating the Husky line and looks to shed the "white KTMs" moniker. The million dollar question is, how much will the financial implications drive the decisions of how to re-engineer Husqvarna vs. the superior engineering itself driving the financial implications...

Uh, no...

2 brands represent the ability to amortize R&D and MFG...expanded dealer network...parts network (aka "cross-link")...etc. ...

Then there's the built in brand value to Husky & it's History...indeed...it's Nostalgia.

Meanwhile, things are happening w/ their India-Built bikes and segment expansion in categories that aren't really worth talking about in h'yar.

Bottom line: their margins have a capability that Asian brands will be envying for years...and the KTM & Husky dealers will be enjoying.

RMT
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6/17/2015 3:03pm Edited Date/Time 6/17/2015 3:04pm
TeamGreen wrote:
Uh, no... 2 brands represent the ability to amortize R&D and MFG...expanded dealer network...parts network (aka "cross-link")...etc. ... Then there's the built in brand value to...
Uh, no...

2 brands represent the ability to amortize R&D and MFG...expanded dealer network...parts network (aka "cross-link")...etc. ...

Then there's the built in brand value to Husky & it's History...indeed...it's Nostalgia.

Meanwhile, things are happening w/ their India-Built bikes and segment expansion in categories that aren't really worth talking about in h'yar.

Bottom line: their margins have a capability that Asian brands will be envying for years...and the KTM & Husky dealers will be enjoying.

What is the margin for an India built RC390/Duke 390?
dcg141
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6/17/2015 3:18pm
KTM kept developing even during the downturn. It was a gamble that is now paying off. One of the best times to gain market share is during bad economic times, but its dangerous as well. If anything they turned up the heat with new product when the market was tanking. Money from India has help weather the storm and the entry into that market was just smart business. Its where Honda is currently making their money also.
TeamGreen
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6/17/2015 3:23pm
TeamGreen wrote:
Uh, no... 2 brands represent the ability to amortize R&D and MFG...expanded dealer network...parts network (aka "cross-link")...etc. ... Then there's the built in brand value to...
Uh, no...

2 brands represent the ability to amortize R&D and MFG...expanded dealer network...parts network (aka "cross-link")...etc. ...

Then there's the built in brand value to Husky & it's History...indeed...it's Nostalgia.

Meanwhile, things are happening w/ their India-Built bikes and segment expansion in categories that aren't really worth talking about in h'yar.

Bottom line: their margins have a capability that Asian brands will be envying for years...and the KTM & Husky dealers will be enjoying.

RMT wrote:
What is the margin for an India built RC390/Duke 390?
Go read their annual report...there'll be some info do give you an idea...
takitimu
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6/17/2015 5:16pm
TeamGreen wrote:
Go read their annual report...there'll be some info do give you an idea...
The latest I could find on their web page was Half Year 2014.
In the first half year of 2014 KTM sold 59,595 fullsize motorcycles3 (+11,382 compared to prior year) out of which 21,333 motorcycles (+872 compared to previous year)
were sold in the offroad division and 38,262 motorcycles (+10,510 compared to previous year) in the street division. Sales units in the sportminicycle segment increased to 4,500 motorcycles (+659 compared to prior year). In the first half year of 2014 KTM sold 33 X-Bows (+13 compared to prior year).

So roughly 30% dirt, 60% road & the rest mini/x-bow.

In the offroad division, revenue rose to EUR 113.5 million (+3.6% compared to prior year). Revenue of sportmini- cycles could be increased to EUR 12.9 million compared to previous year (+14.8% compared to prior year).
In the street division, revenue increased to EUR 205.8 mil- lion (+19.4% compared to prior year). The increase in revenue is primarily due to the successful market launch
of the 390 Duke and 1290 Super Duke.
In the related products division, revenue could be increased by 20.0%, to EUR 76.3 million.

It's 2014, but the real growth is not dirt(3.6%), but road/extras(~19%). The breakdown of the 25% jump Q1 2014 vs Q1 2015 will be interesting.
RMT
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6/17/2015 5:54pm
TeamGreen wrote:
Uh, no... 2 brands represent the ability to amortize R&D and MFG...expanded dealer network...parts network (aka "cross-link")...etc. ... Then there's the built in brand value to...
Uh, no...

2 brands represent the ability to amortize R&D and MFG...expanded dealer network...parts network (aka "cross-link")...etc. ...

Then there's the built in brand value to Husky & it's History...indeed...it's Nostalgia.

Meanwhile, things are happening w/ their India-Built bikes and segment expansion in categories that aren't really worth talking about in h'yar.

Bottom line: their margins have a capability that Asian brands will be envying for years...and the KTM & Husky dealers will be enjoying.

RMT wrote:
What is the margin for an India built RC390/Duke 390?
TeamGreen wrote:
Go read their annual report...there'll be some info do give you an idea...
I'm not seeing margins in that report but instead revenue increases. Did you find the margins on those new units in there? 20% increase in revenue is very good but as a margin, way under what the Japanese make while mfg. in Japan and the U.S.
TeamGreen
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6/17/2015 6:31pm
RMT wrote:
What is the margin for an India built RC390/Duke 390?
TeamGreen wrote:
Go read their annual report...there'll be some info do give you an idea...
RMT wrote:
I'm not seeing margins in that report but instead revenue increases. Did you find the margins on those new units in there? 20% increase in revenue...
I'm not seeing margins in that report but instead revenue increases. Did you find the margins on those new units in there? 20% increase in revenue is very good but as a margin, way under what the Japanese make while mfg. in Japan and the U.S.
They'd published a report or listed it in their site that showed some data on the returns on the Indian product and investment. I stumbled on to it a few months back...

Dig around over at Cycle News...they have a 2 part write up that led me to the info.
jasen.bougher
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6/17/2015 7:09pm
Holigan wrote:
Definitely what investors wants to see:

NET INCOME 2011 - $20.7M 2012 - $25.3M 2013 - $36.4M 2014 - $57.0M
Yamaha went from losing 2 bill in 09 to a net profit of 600 mill this year. Kawie is a consistant 300 + mill net profit every year. Suzuki has grown every year and made a net profit of 1.27 bill last year. Honda is in another league those companies are very impressive, Ktms net profit is what the jap companies spend on hookers and blow for holiday parties
Sargent Rock
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6/17/2015 10:05pm
Holigan wrote:
Definitely what investors wants to see:

NET INCOME 2011 - $20.7M 2012 - $25.3M 2013 - $36.4M 2014 - $57.0M
Yamaha went from losing 2 bill in 09 to a net profit of 600 mill this year. Kawie is a consistant 300 + mill net profit...
Yamaha went from losing 2 bill in 09 to a net profit of 600 mill this year. Kawie is a consistant 300 + mill net profit every year. Suzuki has grown every year and made a net profit of 1.27 bill last year. Honda is in another league those companies are very impressive, Ktms net profit is what the jap companies spend on hookers and blow for holiday parties
What this member says is true while we like KTM and what they are doing, they are still a very very small company relatively speaking
6/17/2015 10:59pm
KTM Europe's second biggest Motorcycle Manufacturer

BMW Motorrad achieves record sales in 2014. Sales increase by 7.2% to over 120,000 vehicles

Munich. After achieving record sales during the first quarter of 2015, BMW Motorrad remains firmly on course for success.

The Motorcycles segment continues to perform well. Segment revenues for the three-month period grew by 20.1% to € 567 million (2014: € 472 million) on the back of good sales volumes and a high-value model mix. EBIT rose by 79.7% to € 115 million (2014: € 64 million), while profit before tax advanced by 81.0% to € 114 million (2014: € 63 million). Sales volume climbed by 9.2% to 31,370 units (2014: 28,719 units). The figures reported for earnings and sales volume represented new first-quarter highs. The upward trend in business has been further boosted by the new BMW R 1200 R, R 1200 RS, S 1000 RR, S 1000 XR and F 800 R models, which have been in the showrooms since March.

BMW Profit (114M Euro ) $129M and ( 567 Euro ) $ $644M

Seems that the segment is increasing and not just KTM - So its climate nothing else
jasen.bougher
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6/18/2015 3:23am
KTM Europe's second biggest Motorcycle Manufacturer BMW Motorrad achieves record sales in 2014. Sales increase by 7.2% to over 120,000 vehicles Munich. After achieving record sales...
KTM Europe's second biggest Motorcycle Manufacturer

BMW Motorrad achieves record sales in 2014. Sales increase by 7.2% to over 120,000 vehicles

Munich. After achieving record sales during the first quarter of 2015, BMW Motorrad remains firmly on course for success.

The Motorcycles segment continues to perform well. Segment revenues for the three-month period grew by 20.1% to € 567 million (2014: € 472 million) on the back of good sales volumes and a high-value model mix. EBIT rose by 79.7% to € 115 million (2014: € 64 million), while profit before tax advanced by 81.0% to € 114 million (2014: € 63 million). Sales volume climbed by 9.2% to 31,370 units (2014: 28,719 units). The figures reported for earnings and sales volume represented new first-quarter highs. The upward trend in business has been further boosted by the new BMW R 1200 R, R 1200 RS, S 1000 RR, S 1000 XR and F 800 R models, which have been in the showrooms since March.

BMW Profit (114M Euro ) $129M and ( 567 Euro ) $ $644M

Seems that the segment is increasing and not just KTM - So its climate nothing else
Exactly yamaha has been a poor performing company since 09 in total but the last two years has had huge net income leaps. suzuki has made big gains every year and Honda is Honda. You show how bmw is performing ktm isn't a factor compared to any of the other companies when it comes to net profit
TailSoHard
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6/18/2015 7:12am
KTM Europe's second biggest Motorcycle Manufacturer BMW Motorrad achieves record sales in 2014. Sales increase by 7.2% to over 120,000 vehicles Munich. After achieving record sales...
KTM Europe's second biggest Motorcycle Manufacturer

BMW Motorrad achieves record sales in 2014. Sales increase by 7.2% to over 120,000 vehicles

Munich. After achieving record sales during the first quarter of 2015, BMW Motorrad remains firmly on course for success.

The Motorcycles segment continues to perform well. Segment revenues for the three-month period grew by 20.1% to € 567 million (2014: € 472 million) on the back of good sales volumes and a high-value model mix. EBIT rose by 79.7% to € 115 million (2014: € 64 million), while profit before tax advanced by 81.0% to € 114 million (2014: € 63 million). Sales volume climbed by 9.2% to 31,370 units (2014: 28,719 units). The figures reported for earnings and sales volume represented new first-quarter highs. The upward trend in business has been further boosted by the new BMW R 1200 R, R 1200 RS, S 1000 RR, S 1000 XR and F 800 R models, which have been in the showrooms since March.

BMW Profit (114M Euro ) $129M and ( 567 Euro ) $ $644M

Seems that the segment is increasing and not just KTM - So its climate nothing else
Damn, for a company that sold 120,000 bikes last year, there sure are a lot of them still sitting on the showroom floors. Our local craigslist is nothing but our local dealer advertising dozens of leftover brand-new BMW's for sale. Can't give those damn bikes away... Meanwhile, our sister dealership in the next town over can't keep KTM's in stock

If you wanna look at some staggering market share data, take a look at Polaris. They have absolutely devastated the competition in ORV sales over the last couple years...
endurox
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6/18/2015 8:06am
Holigan wrote:
Definitely what investors wants to see:

NET INCOME 2011 - $20.7M 2012 - $25.3M 2013 - $36.4M 2014 - $57.0M
Yamaha went from losing 2 bill in 09 to a net profit of 600 mill this year. Kawie is a consistant 300 + mill net profit...
Yamaha went from losing 2 bill in 09 to a net profit of 600 mill this year. Kawie is a consistant 300 + mill net profit every year. Suzuki has grown every year and made a net profit of 1.27 bill last year. Honda is in another league those companies are very impressive, Ktms net profit is what the jap companies spend on hookers and blow for holiday parties
Most of Suzuki sales are from their autoomotive division
Rdubs19
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6/18/2015 8:49am
Krazyk2774 wrote:
I'm a long time Yamaha fan, but I bought a KTM for the last bike simply because none of the Japanese brands produced what I was...
I'm a long time Yamaha fan, but I bought a KTM for the last bike simply because none of the Japanese brands produced what I was looking for. I have been very impressed with the 500 exc ! two years of riding, and not one problem so farSmile
Is that the dual sport??
h&m_cycle
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6/18/2015 9:02am
Guys with a motorcycle license should try a demo day with the Duke's... I love KTM aggressive approach with their complete
line up...




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