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TURNOVER UP BUT PROFIT DOWN AT KTM

Preliminary figures for the first half of 2017 from KTM Industries showed healthy bikes sales volume and revenue increases. But one-off expansion costs hit the company’s bottom line. BDN financial editor Roger Willis reports.

Global KTM and Husqvarna-branded motorcycles sales during the period were 11% up to 110,518 units. The company highlighted 29% growth in India and an improvement of more than 15% in North America. Revenue rose by 12.1% to £679.3m.

However, operating profit was 5.5% down at £58.9m. KTM attributed this to the impact of substantial investment in a new Pankl Racing Systems high-perfomance drivetrain plant at Kapfenberg, plus new R&D and logistics facilities at Mattighofen. It added, though, that profitability had been substantially better than forecast in these circumstances.

Over the six months, KTM has hired 417 additional employees, some 401 of them in Austria. Its global workforce now totals 5486, with 4317 in Austria. About 15% of group staff work in R&D.

Fully audited half-year results, including net profit, are scheduled for release on 29 August.

 

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