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RECORD FIRST HALF FOR KTM

KTM Industries hit all key apexes in ninth-consecutive record results covering the first half of 2019 — and is to celebrate by sidelining its main bike brand name. BDN financial editor Roger Willis reports.

Revenue for the period rose by 4.2% to £686.4m. According to the company, this achievement lay at the upper end of its expectations. An operating profit increase of 1.4% to £42.4m was also “significantly over budget”. However, these figures were qualified on a like-for-like basis after contributions from Pankl Group in 2018 were factored out — owing to Pankl being hived off in the middle of last year.

Six-monthly global unit sales were 7% up to a total of 135,711 motorcycles — 115,318 under the KTM brand and 20,393 wearing Husqvarna badges. In Europe, registrations grew by 6.6%, against an overall European market improvement of 8.5%, maintaining a share of 11.4%. And KTM successfully bucked ongoing US market decline of 2.3% in the first half with a 5.2% registrations hike, raising American market share from 8.4% to 9%. Registrations in India increased by more than 35%. The company’s Indian strategic partner Bajaj Auto evidently sold 32,539 KTM-branded bikes, a 30.9% rise, in India and Indonesia.

These are swansong figures from KTM Industries, though, because that entity is about to be remonikered, as the results statement explained: “Under the umbrella of KTM Industries, upcoming brands such as Husqvarna Motorcycles, Husqvarna Bicycles and Raymon, and the component brand WP, appear alongside the core brand KTM. These emerging brands are becoming increasingly important, especially considering developments in the e-mobility sector. Therefore, the executive board has taken the decision to rename the parent company Pierer Mobility and thus to express the strong role of the majority shareholder. The relevant resolution will be taken during an extraordinary general meeting held this autumn.”

No doubt KTM supremo Stefan Pierer has many admirable attributes. But modesty clearly isn’t among them.

 

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