The Board of Directors of Ducati Motor Holding S.p.A. this week have approved the 2007 First Quarter Results, which confirm the success of Ducati’s turnaround plan, with a remarkable improvement of all the financial indicators. The success of the new products, launched in 2006, is enhanced by a strong first quarter increase and by the acceleration in registrations in April.

First quarter revenues are 95.4 Mio € (98.3 Mio € at constant forex) compared to 6.6 Mio € in the first quarter 2006 (+24.5% at current forex e +28.3% at constant forex), increasing thanks to the new Superbike 1098 sales performance and to the remarkable result of accessories and apparel revenues (+38.7%).

Bikes sold in the first quarter are 8,903 versus 7,337 in 2006 with a 21.3% increase, compared to a 3.0% increase of the relevant market. Registrations increased steeply in April with 5.119 bikes versus 3.957 in 2006 (+29%), thus allowing a 14% increase in the first four months’ performance and a dealer network inventory of 13.405 bikes or 2.7 months of sales, 2.306 bikes less than the comparable period of 2006. First quarter registrations increased in every country following the introduction of the new 2007 models. UK (+34,9%); Benelux (+42,3%); Germany (+5,7%), Italy (+5,1%) reverted last years’ trend while the importers (+17,8%) and the USA (+15,2%) reconfirmed the growing trend. On the other hand, France (-2,7%) and, above all, Japan (-53,3%) showed a negative result since the new Superbike was launched only in April.

2007 First quarter Gross Margin is 25,9 Mio €, equal to 27,1% of revenues, versus 22,5 Mio €, or 29,4% in 2006. The margin decrease is mainly due to a negative Forex effect. EBITDA was 14,5 Mio €, (16,6 Mio € at constant Forex), or 15,2% of revenues at current Forex (16,9% at constant Forex), compared to an EBITDA of 11,3 Mio € in 2006, or 14,8% of revenues. The operating result (EBIT) was positive at 9,3 Mio € versus 6,0 Mio € (+55,4%) the previous year, thanks to the improved EBITDA. EBT was 9,0 Mio € versus 5,3 Mio € (+69,0%) the previous year, thanks to an improvement of the operating margin and lower financial interests. The Net Result is positive at 5,6 Mio € compared to 1,5 Mio € the year before. Net Debt reduced to 52,8 Mio € versus 141,2 Mio € in March 2006, thanks to the capital increase and to working capital improvements.

The company’s President and CEO Federico Minoli commented: “I am extremely satisfied at having brought Ducati, together with the vital support of the management group, back onto the road of profitability and growth. The worldwide success of registrations of the new Superbike 1098, which were much higher than our expectations, and the significant portfolio of orders for the 1098, Hypermotard and Desmosedici means we can confidently confirm a two digit growth for 2007, with a return to profit a year earlier than our forecast in the relaunch plan.
 

"The extraordinary show of strength in MotoGP with 3 victories in 4 races, and the formidable worldwide appeal of the brand are finally, after a few years of uncertainty, coupled with a winning product thus allowing to look optimistically at the future of the company. It is therefore a suitable moment to leave Ducati and pursue new challenges. I leave Ducati financially strong, with a passionate and capable managerial team. Together we made the Ducati brand and product into an icon that is respected and loved around the world. I am satisfied with what we have accomplished, because Ducati will bear our mark in the future. With sadness but also with enormous pride, I, too, will forever bear inside me the mark of Ducati."

"The first three months of the year posted positive results, with an increase in revenues of 24,5%, despite the adverse impact of Forex, and with an improvement of the net financial position of 88,4 Mio € compared to the first quarter 2006. All sectors show a significant increase in sales, even when compared to a particularly satisfying quarter in 2006. The 2007 guidance is confirmed with a double digit increase in revenues, EBITDA at 12% of revenues and a return to profit. If the figures for May and June confirm April’s acceleration in registrations – considering the Forex trend as well – we may be able to review the guidance upwards when publishing the second quarter results” added Enrico D’Onofrio, CFO.

The Board of Directors of Ducati Motor Holding S.p.A. also authorized the withdrawal of the listing and registration of the Company’s American Depositary Shares (“ADSs”) with the New York Stock Exchange (“NYSE”), and resolved to terminate its registration and reporting obligations under the Securities Exchange Act of 1934 (the “Exchange Act”).

Founded in 1926, Ducati builds racing-inspired motorcycles characterized by unique engine features, innovative design, advanced engineering and overall technical excellence. The Company produces motorcycles in seven market segments which vary in their technical and design features and intended customers: Superbike, Supersport, Monster, Sport Touring, Multistrada SportClassic and the new Hypermotard. The Company’s motorcycles are sold in more than 60 countries worldwide, with a primary focus in the Western European, Japan and North American markets.