Ducati Motor Holding Announces 2005 First Quarter Results

Ducati Motor Holding Announces 2005 First Quarter Results 


BOLOGNA, Italy, May 13  /PRNewswire-FirstCall/ -- 

                               1Q05        1Q04              Var%
  Revenues                     85,1        100,3             -15,1%
  EBTIDA                        8,5         12,3             -31,4%
  Profit/loss (pre-tax)        (1,0)         0,8                 na
  Net Debt                   (122,3)      (121,2)             -0,9%
  Million euro




Ducati Motor Holding S.p.A.
(NYSE:DMHNYSE:BorsaNYSE:ItalianaNYSE:S.p.A:NYSE:DMH), a leading manufacturer of
high performance motorcycles, today announced financial results for the first
quarter ended March 31, 2005.

For the first quarter of 2005, revenues were Euro 85.1 million, down 15.1%
including forex effects (or down 12.4% excluding forex effects) over the same
period in 2004. The fall was mainly due to a 5.3% decrease in unit sales, a
negative bike mix, a decrease in accessories and apparel sales, and continuing
adverse forex effects. Revenues from Ducati motorcycles for the period
decreased 14.0% to Euro 68.8 million and represented 80.8% of total revenues.
Motorcycle-related products, including spare parts, accessories and apparel,
decreased 16.8% to Euro 15.7 million over the comparable period in the previous
year.

Gross margin was 32.2% of revenues including forex effects (or 34.2% excluding
forex effects) versus 35.9% during the same period a year ago.

EBITDA was Euro 8.5 million, down 31.4% including forex effects (or 14.9%
excluding forex effects) and accounted for 10.0% of revenues, versus 12.3% in
the same period last year.

Pre-tax profit for the Ducati Group was a loss of Euro 1.0 million in the first
quarter of 2005, compared with a profit of Euro 0.8 million in the first
quarter of 2004.

Unofficial Ducati worldwide registrations, an indication of retail sales, were
down 16% versus last year's first quarter. Registrations were up 8% in the US
and 1% in the non-subsidiary countries, while decreases were recorded in France
down 5%, Italy down 23%, Germany down 23%, Japan down 31%, Benelux down 36% and
the UK down 36%.

The Company's net debt as of March 31, 2005 was Euro 122.3 million, in line
with the Euro 121.2 million on the same date a year earlier, and up versus Euro
116.2 million as of December 31, 2004. The company's gearing ratio was 82% as
of March 31, 2005, versus 76% on the same date a year earlier and 78% on
December 31, 2004.

"Despite the weakness in the market the results of the first quarter of 2005
have been in line with our expectations. However, as expected, 2005 will be
back-loaded in terms of sales and bike mix, due to the introduction of the
Sport Classic," announced Federico Minoli, Ducati Chairman and Chief Executive
Officer. "While registrations were down in January and February, this trend
reversed in March and April and shows encouraging signs of continuing."

"The upturn we have seen in March and April as well as the 3,000 pre-sold Sport
Classics, give us reason to maintain our objectives of a return to profit and a
net debt reduction for 2005 ," said Enrico D'Onofrio, Ducati Chief Financial
Officer. "Based on results at the end of June, when the peak registration
season will be just over, we will have better visibility of full-year results."

On March 31, 2005, the Company had re-purchased 3,769,249 shares, equivalent to
Euro 4,082,096.67 or 2.37% of its stock capital.

First quarter 2005 financial results were approved by the Board of Directors on
May 12, 2005.

Founded in 1926, Ducati develops racing-inspired motorcycles characterized by
unique engine features, innovative design, advanced engineering and overall
technical excellence. The Company produces motorcycles in six market segments
which vary in their technical and design features and intended customers:
Superbike, Supersport; Monster, Sport Touring, Multistrada and Sport Classic.
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. Ducati
has won thirteen of the last fifteen World Superbike Championship titles and
more individual victories than the competition put together. For more
information about the Company, please visit our web site at
http://www.ducati.com/

This press release contains statements that are forward-looking and are subject
to a number of risks and uncertainties that could cause actual results to
differ materially from those anticipated, as described in documents previously
filed by the Company with CONSOB and with the U.S. Securities and Exchange
Commission.

                 Ducati Motor Holding S.p.A. and Subsidiaries
                         Net Sales and Shipment Data

                                      Three Months      Three Months
                                         Ended              Ended
                                   Mar,31      Mar,31  Mar,31     Mar,31
                                    2005        2004    2005       2004

  Net Sales (Euro in thousands,
  US$ in thousands)

               Motorcycles     EUR 68,780   EUR 80,014 $ 89,166 $ 103,730
               Spare Parts,        15,657       18,824   20,298    24,403
               Accessories,
               Apparel
               Miscellaneous Other    702        1,462      910     1,895

  Total net
  sales                        EUR 85,139  EUR 100,300 $110,374 $ 130,028

  Ducati Units
  Motorcycle                                            %
  shipments:                                            Change

               North America        1,710        1,280    33.6%
               Main European        4,997        5,721  (12.7%)
               market
               Japan                  513          533   (3.8%)
               Rest of World        1,745        1,936   (9.9%)

  Total                             8,965        9,470   (5.3%)

  Motorcycle                                            %
  product mix:                                          Change

               Superbike            2,120        2,906  (27.0%)
               Supersport             259          425  (39.1%)
               Sport Naked          4,174        4,352   (4.1%)
               Sport Touring          389          856  (54.6%)
               Multistrada          2,023          931   117.3%

  Total                             8,965        9,470   (5.3%)

  Unofficial Motorcycle                                 %
  Registrations:                                        Change

               North America        1,431        1,325     8.0%
               Main European        4,717        6,164  (23.5%)
               market
               Japan                  494          720  (31.4%)
               Rest of World        1,238        1,225     1.1%

  Total                             7,880        9,434  (16.5%)



       Ducati Motor
       Holding S.p.A. Consolidated Statements of Operations Data
      (Euro in thousands, US$ in thousands, except per share and
       share amounts)

                                 Three            Three
                                Months            Months
                                 Ended            Ended

                         Mar, 31   Mar, 31    Mar, 31   Mar, 31     Percent
                            2005      2004       2005      2004     Change

  Net Sales          EUR 85,139   EUR 100,300 $ 110,374 $ 130,029  (15.1%)
  Cost of goods sold    (57,743)      (64,269)  (74,858)  (83,318)
  Gross Profit           27,396        36,031    35,516    46,711  (24.0%)
  Other operating         5,911         5,835     7,663     7,564
  revenues
  SG&A expenses         (24,511)      (29,291)  (31,776)  (37,973)
  Other operating          (324)         (234)     (420)     (303)
  income
  Depreciation &         (7,743)       (9,659)  (10,039)  (12,522)
  amortization

  Operating                 729         2,682       944     3,477  (72.8%)
  income/(loss)

  Financing expense,     (1,642)       (1,916)   (2,129)   (2,484)
  net
  Other non-operating       (40)          (10)      (52)      (13)
  income/(expense),
  net

  Profit/(loss)before      (953)           756   (1,237)      980  (226.1%)
  income taxes and
  min.interest

  Shares outstanding  158,826,407 158,500,963 158,826,407 158,500,963

                                                                  Percent
  Other Financial                                                 Change
  Data
  Motorcycles             9,616        11,238                     (14.4%)
  Produced (Units)
  Motorcycles Sold        8,965         9,470                      (5.3%)
  (Units)
  Unofficial              7,880         9,434                     (16.5%)
  Registrations
  (Units)
  EBITDA                  8,472        12,341     10,983   15,998 (31.4%)
  EBITDA Margin           10.0%        12.3%

  Note : On March 31, 200 US$1= 0,7713 Euros


                        Ducati Motor Holding S.p.A.
                Consolidated Statements of Operations Data
          (Euro in thousands, except per share and share amounts)

                               Three Months ended      Three Months ended
                                 March 31, 2005          March 31, 2004
                                 EUR          %          EUR          %

  Current assets
  Cash and cash equivalents      28,712                  26,168
  Trade receivables, net        103,854                 106,347
  Inventories                    98,400                 119,129
  Other current assets           16,149                  24,908
  Current assets - Credit Link   15,000                     -
  Total current assets          262,115      55.9%      276,552      55.1%

  Non current assets
  Property, plant and
  equipment-net                  60,729                  65,089
  Intangible fixed assets, net  119,322                 122,671
  Equity investments                 20                      12
  Non current assets -
  Credit Link / ABS              10,000                  25,000
  Other long-term assets         17,045                  12,160
  Total non current assets      207,116      44.1%      224,932      44.9%

  Total assets                  469,231     100.0%      501,484     100.0%

  Current liabilities
  Short-term bank borrowings     95,124                  70,884
  Current portion of
  long-term debt                 62,742                   5,532
  Accounts payable - trade       92,237                 112,726
  Deferred income taxes           3,438                   2,105
  Income and other
  taxes payables                  8,687                  10,393
  Other current liabilities      18,858                  20,980
  Provisions for risks and
  charges - current portion       4,726                   4,824
  Total current liabilities     285,812      60.9%      227,444      45.4%

  Long-term liabilities
  Long-term debt, net of
  current portion                 7,134                  81,890
  Employees' leaving
  entitlement                     9,530                   8,648
  Deferred income taxes           3,173                   4,871
  Income an other taxes
  payables - long term portion    1,292                   2,583
  Other long-term liabilities    11,054                  14,075
  Provision for risks and
  charges - long term portion     1,663                   2,518
  Total long-term liabilities    33,846       7.2%      114,585      22.8%

  Total liabilities            319,658                  342,029

  Total Group
  shareholders' equity         149,553       31.9%      159,455      31.8%
  Minority interests                20                       -
  Total shareholders' equity   149,573       31.9%      159,455      31.8%
  Total liabilities and
  shareholders' equity         469,231      100%        501,484      100%



                      Ducati Motor Holding S.p.A.
                Consolidated Statements of Operations Data
         (US$ in thousands, except per share and share amounts)

                              Three Months ended      Three Months ended
                                March 31, 2005          March 31, 2004

                               US$          %          US$          %

  Current assets
  Cash and cash equivalents     37,222                  33,924
  Trade receivables, net       134,636                 137,868
  Inventories                  127,566                 154,439
  Other current assets          20,936                  32,291
  Current assets - Credit Link  19,446                  -
  Total current assets         339,806        55.9%    358,522      55.1%

  Non current assets
  Property, plant and
  equipment-net                  78,729                  84,381
  Intangible fixed
  assets, net                   154,689                 159,030
  Equity investments                 26                      16
  Non current assets -
  Credit Link / ABS              12,964                  32,410
  Other long-term assets         22,097                  15,764
  Total non current assets      268,505        44.1%    291,601     44.9%

  Total assets                  608,311       100.0%    650,123    100.0%

  Current liabilities
  Short-term bank
  borrowings                    123,319                 91,894
  Current portion of
  long-term debt                 81,339                  7,172
  Accounts payable - trade      119,576                 146,138
  Deferred income taxes           4,457                   2,729
  Income and other
  taxes payables                 11,262                  13,473
  Other current liabilities      24,447                  27,198
  Provisions for risks and
  charges - current portion       6,127                   6,254
  Total current liabilities     370,527        60.9%    294,858     45.4%

  Long-term liabilities
  Long-term debt,
  net of current portion          9,248                 106,162
  Employees' leaving
  entitlement                    12,355                  11,211
  Deferred income taxes           4,113                   6,315
  Income an other taxes
  payables - long term portion    1,675                   3,349
  Other long-term liabilities    14,330                  18,247
  Provisionfor risks and
  charges - long term portion     2,156                   3,264
  Total long-term liabilities    43,877         7.2%    148,548     22.8%
  Total liabilities             414,404                 443,406
  Total Group
  shareholders' equity          193,881        31.9%    206,717     31.8%
  Minority interests                 26

  Total shareholders' equity    193,907        31.9%    206,717     31.8%

  Total liabilities
  and shareholders' equity      608,311        100%     650,123    100%



                             Ducati Motor Holding S.p.A.
                        Consolidated Statements of Cash Flow
                                 (Euro in thousands)

                                                Period ended  Period ended
                                                    31/03/05      31/03/04
                                                     EUR 000       EUR 000

  Cash flow generated by operating activities

  Net profit (loss) for the period                      (957)          756
  Change in cumulative translation adjustment            672           300
  Change in minority interests                             4             -
  Adjustments to reconcile net profit (loss)
  with the movements
  of funds generated by (used in)
  operating activities:
     - Amortisation, depreciation and writedowns        7,743        9,659
                                                                               
                                                 -
     - Net change in employees' leaving entitlements      277          371

  Change in operating assets
  and liabilities
     - Trade receivables                              (19,522)     (25,926)
     - Inventories                                     (6,107)     (14,355)
     - Other current assets                            (1,344)         906
     - Trade payables                                  15,125       23,223
     - Other current liabilities                        2,922        5,863
     - Due to tax authorities                             432          764
     - Deferred tax liabilities                             6           (4)
     - Other long-term assets and liabilities               -            -

  Net cash generated                                     (749)       1,557
  by operating activities

  Cash flow (used in) generated
  by investing activities                              (1,294)      (2,064)
  Net change in property, plant and equipment          (4,007)      (3,467)
  Net change in intangible fixed assets                     -            -
  Decrease (increase) in equity investments               (47)         (64)
  Other non-current assets
                                                       (5,348)      (5,595)
  Net cash used in investing activities

  Net cash generated by operating activities
  less cash flow used in investing activities          (6,097)      (4,038)

  Cash flow (used in) generated by financing activities
  Change in short- and long-term debt                   1,482       22,041
  Subscription to (buy back of) bonds                       -      (15,000)
  Increase in share capital and reserves                    -            -
  Other non-current financial assets                        -         (808)

  Net cash (used in) generated by financing activities  1,482        6,233

  Increase (decrease) in cash on hand, bank
  deposits and securities                              (4,615)       2,195

  Cash and cash equivalents, beginning of the period   33,327       23,973

  Cash and cash equivalents, end of the period         28,712       26,168


                           Ducati Motor Holding S.p.A.
                      Consolidated Statements of Cash Flow
                            (US$ in thousands)

                                          Period ended        Period ended
                                              31/03/05            31/03/04
                                                 $/000               $/000

  Cash flow generated by
  operating activities
  Net profit (loss) for the period              (1,241)                980
  Change in cumulative
  translation adjustment                           871                 389
  Change in minority interests                       5                   -
  Adjustments to reconcile net
  profit (loss) with the movements
  of funds generated by (used in)
  operating activities:
    - Amortisation, depreciation
      and writedowns                            10,038              12,522
                                                    -                    -
    - Net change in employees'
      leaving entitlements                         359                 481

  Change in operating assets
  and liabilities
    - Trade receivables                        (25,308)            (33,610)
    - Inventories                               (7,917)            (18,610)
    - Other current assets                      (1,742)              1,174
    - Trade payables                            19,608              30,106
    - Other current liabilities                  3,788               7,601
    - Due to tax authorities                       560                 990
    - Deferred tax liabilities                       8                 (5)
    - Other long-term assets and liabilities         -                  -

  Net cash generated                              (971)             2,018
  by operating activities
  Cash flow (used in) generated
  by investing activities                       (1,677)            (2,676)
  Net change in property, plant and equipment   (5,195)            (4,495)
  Net change in intangible fixed assets              -                  -
  Decrease (increase) in equity investments        (61)               (82)
  Other non-current assets
                                                (6,933)             (7,253)
  Net cash used in investing activities

  Net cash generated by operating activities
  less cash flow used in investing activities   (7,904)             (5,235)

  Cash flow (used in) generated by
  financing activities
  Change in short- and long-term debt            1,921              28,574
  Subscription to (buy back of) bonds                -             (19,446)
  Increase in share capital and reserves             -                   -
  Other non-current financial assets                 -              (1,047)

  Net cash (used in) generated by
  financing activities                           1,921               8,081

  Increase (decrease) in cash
  on hand, bank
  deposits and securities                       (5,983)              2,846

  Cash and cash equivalents, beginning
  of the period                                 43,205              31,078

  Cash and cash equivalents,
  end of the period                             37,222              33,924


DATASOURCE: Ducati Motor Holding S.p.A.



CONTACT:  For further information, please contact: Fabrizio Nardi,

Investor Relations, Ducati Motor Holding S.p.A., Via Cavalieri

Ducati, 3, Bologna 40132, Italy, Main Tel: [phone],

Direct tel: [phone], Direct fax: [phone],

E-mail: 

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