KTM fights back against financial woe

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Off-road specialist KTM Power Sports AG has reported healthy financial figures for the third quarter operating results 2009/10. It’s EBIT (Earnings Before Interest and Tax) figure was given as 12.4m EUR, 69.2m EUR overall when compared year on year. Net profit is reported as 70.7m EUR year on year with 3.9m EUR in the recent quarter. 

This is a remarkable turnaround for a company who had its worst ever operating year 2008-2009, resulting in production line closure, staff lay-offs and Bajaj Auto Ltd of India, one of the world’s biggest motorcycle producers, buying 30% KTM shareholding.

The increase in profit and fall in sales (43,189 units, -3086 units compared to last year) is a clear sign company restructuring and “efficient cost management” is paying off. With huge orders for KTM’s new off-road range (the new rising rate linkage machines especially) and, hopefully, overwhelming interest in the new entry level 125cc street bike turning into sales, KTM’s outlook is now slightly more orange than black…

Trevor Franklin

By Trevor Franklin