Ducati Motor Holding Announces 2006 Nine-Month Results

BOLOGNA, Italy, November 14  /PRNewswire-FirstCall/ -- 

                 01/01/06-             01/01/05
                 30/09/06             -30/09/05       Var%

  Revenues             232.0             228.8        1.4%
  EBITDA               24.7              14.4        71.3%
  Net result           (4.6)            (16.6)
  Net Debt            (46.7)            (129.9)
  (Million Euro)




The Board of Directors of Ducati Motor Holding S.p.A. (Borsa Italiana: DMH; NYSE: DMH) approved today its financial results for the first nine months of 2006.

Revenues for the first nine months of 2006 were EUR 232.0 million compared to EUR 228.8 million over the same period in 2005, up EUR 3.2 (1.4%). The increase was due to an improved mix in motorbike sales, an increase in apparel and accessories volumes and to sales to MotoGp satellite teams.

On the other hand Spare parts sales decreased because of a lower number of circulating bikes.

Motorbike revenues in the first nine months amounted to EUR 174.0 million, up by 1.8% versus the same period in the previous year. Other Ducati products, spare parts, accessories and apparel, showed a decrease in revenues of 2.7% compared to 2005.

Gross margin at September 30, 2006 was EUR 64.1 million or 27.6% of revenues versus EUR 48.9 million or 21.4% at September 30, 2005 an increase which can be attributed to an improvement in product mix and reduced cost of goods.

EDITDA was EUR 24.7 million or 10.6% of revenues for the first nine months of 2006 against EUR 14.4 million or 6.3% of revenues over the same period last year, mainly due to the improved product mix and reduced cost of goods.

Operating result (EBIT) for the first nine months of 2006 amounted to EUR 9.0 million or 3.9% of sales versus a loss of EUR 7.0 million or -3.0% of sales over the same period of 2005.

At EBT level, the result was a profit of EUR 3.9 million versus a loss of Euro 13.0 million over the same period last year.

Net result for the first nine months 2006 was a loss of EUR 4.6 million compared to a loss of EUR 16.6 million in the first nine months of 2005.

Company net debt at September 30, 2006 was EUR 46.7 million versus EUR 129.9 million at September 30, 2005. Improvement is mainly due to the Capital Increase of 2006.

For the first nine months of 2006, unofficial Ducati registrations were approximately 30,294 up by 2% over the same period last year. Registrations in the US were up by 23%, in the non-subsidiary countries by 10%, in Japan by 1% and in France by 2%, while registrations were down in UK (-18%), Benelux (-13%), Germany (-10%) and Italy (-6%).

The consolidated financial statements as of 30 september 2006 have not been audited.

Federico Minoli, Ducati Chairman and Chief Executive Officer commented: "Despite the planned reduction in volumes in terms of sales, we closed the first nine months 2006 with an improved operating margin. We are beginning to see the results of the new strategy. As planned, we increased registrations while reducing sales in order to lower dealers' stock. The main objective for the coming months is to focus sales on high margin models, to continue the stock reduction effort and to successfully prepare for the launch of the new models. On the race track we closed the season with unprecedented successes: World Superbike Champions; 4 wins and 9 podiums in MotoGP. A result no other European manufacturer has ever achieved".

Enrico D'Onofrio, Ducati's Chief Financial Officer added: "The restructuring plan is coming up to expectations. We confirm the targets for 2006, which are revenues in the range of 300 million Euro, EBITDA equal to about 10% of revenues. Net result and financial position will be negative but considerably improving compared to last year".

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 six market segments which vary in their technical and design features and intended customers: Superbike, Supersport, Monster, Sport Touring, Multistrada and the new SportClassic. 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. Since 2003 Ducati has also been taking part in the MotoGP World Championship. For more information about the Company, please visit our web site at http://www.ducati.com/

This press release is not an offer to invest in Italy, according to Art. 1, lett (t) of the Italian Legislative Decree no. 58 of February 24th, 1998, or in any other country. This press release cannot be transmitted or distributed to any persons in the United States or in any country where its distribution is not allowed without the express approval from the relevant authorities.

These materials are not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration with the United States Securities and Exchange Commission or an exemption from registration under the U.S. Securities Act of 1933, as amended. Any public offering of the company's securities to be made in the United States will be made by means of a prospectus that may be obtained from the company and that will contain detailed information about the company and its management, including financial statements.

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.

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

                               Nine Months Ended       Nine Months Ended
                              September, September,  September, September,
                                 30        30             30         30
                              2006          2005         2006       2005

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

            Motorcycles   EUR 174,044   EUR 171,047    $ 220,340  $ 216,546
            Spare Parts,
            Accessories,
            Apparel            53,853        55,332       68,178    70,050
            Other               4,130         2,449      5,229       3,100

  Total Net Revenues      EUR 232,027   EUR 228,828    $ 293,747  $ 289,696

  Ducati Units
  Motorcycle shipments:                                % Change

            North America      6,188         4,845      27.7%
            Main European
            market            11,767        13,212     (10.9%)
            Japan              1,712         1,651       3.7%
            Rest of World      4,242         4,709      (9.9%)

  Total                       23,909        24,417      (2.1%)

  Motorcycle product mix:                              % Change

            Superbike          3,276         4,749     (31.0%)
            Supersport           450           695     (35.3%)
            Sport Naked       14,071        12,854       9.5%
            Sport Touring      1,196         1,076      11.2%
            Multistrada        1,882         5,043     (62.7%)
            Sport Classic      3,034             0       n.a.

  Total                       23,909        24,417      (2.1%)

  Unofficial Motorcycle Registrations:                 % Change

            North America      6,980         5,668       23.1%
            Main European
            market            16,037        17,247       (7.0%)
            Japan              2,141         2,116        1.2%
            Rest of World      5,136         4,658       10.3%

  Total                       30,294        29,689        2.0%



                            Ducati Motor Holding Group
                                Profit & Loss
            (Euro in thousands, US$ in thousands, except for shares)

                                   Nine Months Ended

                                 September,      September,
                                    30              30
                                   2006            2005

  Revenues (net)                EUR 232,027    EUR 228,828
  Cost of goods sold               (167,921)      (179,910)
  Gross Margin                       64,106         48,918

  Other operating revenues         25,745           23,267
  SG&A expenses                   (80,519)         (78,261)
  Other operating income and
  expenses                           (328)            (881)

  Operating result                  9,004           (6,957)

  Financing expense, net           (5,103)          (6,075)

  Profit/(loss)before income taxes
  and min.interest                  3,901          (13,032)

  Income Tax                       (8,476)          (3,538)

  Net Result including minority
  interests                        (4,575)         (16,570)

  Minority Interests                   (4)              (1)

  Net Result for the Group         (4,579)         (16,571)

  Shares outstanding           320,687,920     159,360,037


  Other Financial Data
  Motorcycles Produced (Units)      24,800          25,977
  Motorcycles Sold (Units)          23,909          24,417
  Unofficial Registrations (Units)  30,294          29,689
  EBITDA                            24,725          14,435
  EBITDA Margin                     10.7%            6.3%

  Note: On September 30, 2006 US$1 = 0,7899 Euros

                              Ducati Motor Holding Group
                                   Profit & Loss
            (Euro in thousands, US$ in thousands, except for shares)

                                   Nine Months Ended

                                 September,        September,      Percent
                                    30                30           Change
                                   2006              2005

  Revenues (net)                $ 293,746         $ 289,696         1.4%
  Cost of goods sold             (212,588)         (227,766)
  Gross Margin                     81,158            61,930        31.0%

  Other operating revenues         32,593            29,456
  SG&A expenses                  (101,937)          (99,078)
  Other operating income and
  expenses                           (415)           (1,115)

  Operating result                 11,399            (8,807)     (229.4%)

  Financing expense, net           (6,460)           (7,691)

  Profit/(loss)before income taxes
  and min.interest                  4,939           (16,498)     (129.9%)

  Income Tax                      (10,731)           (4,479)      139.6%

  Net Result including minority
  interests                        (5,792)          (20,977)      (72.4%)

  Minority Interests                   (5)               (1)

  Net Result for the Group         (5,797)          (20,978)      (72.4%)

  Shares outstanding           320,687,920      159,360,037

                                                                  Percent
  Other Financial Data                                            Change
  Motorcycles Produced (Units)                                     (4.5%)
  Motorcycles Sold (Units)                                         (2.1%)
  Unofficial Registrations (Units)                                  2.0%
  EBITDA                            31,302           18,274        71.3%
  EBITDA Margin

  Note: On September 30, 2006 US$1 = 0,7899 Euros



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

                             Period ended               Period ended
                              30.09.2006                 31.12.2005
                              EUR 000        %            EUR 000      %
  Current assets
  Cash and cash equivalents     83,725                     53,017
  Trade receivables, net        73,990                    102,232
  Inventories                   81,548                     81,380
  Other current assets          10,091                      9,217
  Total current assets         249,354     53.2%          245,846    53.1%

  Non current assets
  Property, plant and
  equipment -net                63,705                     66,556
  Goodwill and
  intangible assets
  with indefinite useful lives  86,050                     86,050
  Other intangible
  fixed assets net              48,454                     39,665
  Equity investments                20                         20
  Deferred tax assets           20,939                     24,662
  Other long-term assets           363                        386
  Total non current assets     219,531     46.8%          217,339    46.9%

  Total assets                 468,885      100%          463,185     100%

  Current liabilities
  Short-term bank borrowings     4,360                     64,148
  Accounts payable - trade      80,173                     85,203
  Income and other
  taxes payables                 5,384                      5,537
  Other current liabilities     20,472                     20,202
  Provisions for risks and
  charges - current portion     10,287                     18,621
  Total current liabilities    120,676     25.7%          193,711    41.8%

  Long-term liabilities
  Long-term debt, net of
  current portion              126,040                    125,824
  Employee benefits              9,265                      9,669
  Deferred income taxes         16,688                     13,697
  Provision for risks
  and charges - long
  term portion                   1,579                      1,525
  Total long-term liabilities  153,572     32.8%          150,715    32.5%

  Total liabilities            274,248     58.5%          344,426    74.4%

  Shareholders' equity
  Capital stock                163,311                     82,867
  Other reserves                75,568                     75,559
  Retained earnings (losses)   (39,684)                     1,780
  Results for the period        (4,579)                   (41,464)
  Total Group
  Shareholders' equity         194,616     41.5%          118,742    25.6%

  Minority interests                21                         17

  Total liabilities and
  shareholders' equity         468,885     100%           463,185     100%



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

                       Period ended                   Period ended
                        30.09.2006                     31.12.2005
                           $ 000        %                 $ 000        %
  Current assets
  Cash and
  cash equivalents       105,996                         67,119
  Trade receivables       93,671                        129,426
  Inventories            103,240                        103,027
  Other current assets    12,775                         11,669
  Total current assets   315,682     53.2%              311,241     53.1%

  Non-current assets
  Property, plant
  and equipment - net     80,650                         84,260
  Goodwill and intangible
  assets with indefinite
  useful lives           108,939                        108,939
  Other intangible
  fixed assets - net      61,343                         50,216
  Equity investments          25                             25
  Deferred tax assets     26,509                         31,222
  Other long-term assets     460                            489
  Total non-current
  assets                 277,926     46.8%              275,151     46.9%

  Total assets           593,608     100%               586,392     100%

  Current liabilities
  Short-term
  bank borrowings          5,520                         81,211
  Accounts
  payable - trade        101,499                        107,867
  Income and other
  taxes payables           6,816                          7,010
  Other current
  liabilities             25,918                         25,576
  Provisions for risks
  and charges
  - current portion       13,023                         23,574
  Total current
  liabilities            152,776     25.7%              245,238     41.8%

  Long-term liabilities
  Long-term debt, net of
  current portion        159,567                        159,293
  Employee benefits       11,729                         12,241
  Deferred income taxes   21,127                         17,340
  Provision for risks
  and charges
  - long term portion      1,999                          1,931
  Total long-term
  liabilities            194,422     32.8%              190,805     32.5%

  Total liabilities      347,198     58.5%              436,043     74.4%

  Shareholders' equity
  Capital stock          206,752                        104,910
  Other reserves          95,669                         95,658
  Retained earnings
  (losses)               (50,240)                         2,253
  Results for the period  (5,797)                       (52,493)
  Total Group
  Shareholders' equity   246,384     41.5%              150,328     25.6%

  Minority interests          26                             21

  Total liabilities and
  shareholders' equity   593,608     100%               586,392     100%



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

                                                Period ended Period ended
                                                  30/09/2006   30/09/2005
                                                     EUR 000      EUR 000
  Cash flow generated by operating activities
  Net profit (loss) for the year                     (4,579)     (16,571)
  Change in cumulative translation adjustment          (436)        1,546
  Adjustments to reconcile net profit (loss) with the
  movements of funds generated by (used in)
  operating activities
  -              Non cash items for stock options        591          968
  -              Amortisation, depreciation           15,029       21,392
  -              Taxes paid                           (1,051)      (2,850)
  Change in operating assets
  and liabilities
  -              Working capital                      23,044       30,992
  -              Other current assets                   (874)       3,228
  -              Other current liabilities               270        3,390
  -              Due to tax authorities                  898      (1,358)
  -              Deferred tax assets                   5,155          401
  -              Deferred tax liabilities              2,991        1,421
  -              Employee benefits                      (404)         614
  -              Provisions for risks and charges       (513)           -
  -              Restructuring reserve                (7,767)           -
  -              Other
  Net cash generated by operating
  activities (A)                                      32,354       43,173

  Cash flow (used in) generated by
  investing activities
  Net change in property, plant and equipment         (6,519)      (6,504)
  Net change in intangible fixed assets              (14,583)     (13,385)
  Disposal from property, plant and equipment            135          201
  Other fixed assets                                      23           19
  Net cash used in investing activities (B)          (20,944)     (19,669)

  Cash flow generated from operating activities,
  net of cash used in investing
  activities (A-B)                                    11,410       23,504

  Cash flow (used in) generated by financing activities
  Change in short-term and long-term debt            (57,187)     (22,894)
  Interests cashed (paid)                             (2,385)         (45)
  Change in minority interests                             4            -
  Increase in share capital and reserves               78,866      (2,834)
  Change in cash generated by financing activities     19,298     (25,773)

  Increase (decrease) in cash on hand, bank deposits
  and securities                                       30,708      (2,269)

  Cash and cash equivalents, beginning of year         53,017       49,327

  Cash and cash equivalents, end of period/ year       83,725       47,058



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

                                                Period ended Period ended
                                                 30/09/2006   30/09/2005
                                                 $ 000        $ 000
  Cash flow generated by operating activities
  Net profit (loss) for the year                 (5,797)     (20,979)
  Change in cumulative translation adjustment      (552)       1,957
  Adjustments to reconcile net
  profit (loss) with the
  movements of funds generated by (used in)
  operating activities
  -              Non cash items for
                 stock options                      748        1,225
  -              Amortisation, depreciation      19,026       27,082
  -              Taxes paid                      (1,331)      (3,608)
  Change in operating assets
  and liabilities
  -              Working capital                 29,174       39,236
  -              Other current assets            (1,106)       4,087
  -              Other current liabilities          341        4,292
  -              Due to tax authorities           1,137       (1,719)
  -              Deferred tax assets              6,526          508
  -              Deferred tax liabilities         3,787        1,799
  -              Employee benefits                 (511)         777
  -              Provisions for risks and charges  (649)           -
  -              Restructuring reserve           (9,833)           -
  -              Other
  Net cash generated by operating
  activities (A)                                 40,960       54,657

  Cash flow (used in) generated by
  investing activities
  Net change in property, plant and equipment    (8,253)      (8,234)
  Net change in intangible fixed assets         (18,462)     (16,945)
  Disposal from property, plant and equipment       171          254
  Other fixed assets                                 29           24
  Net cash used in investing activities (B)     (26,515)     (24,901)

  Cash flow generated from operating activities,
  net of cash used in investing
  activities (A-B)                               14,445       29,756

  Cash flow (used in) generated by financing activities
  Change in short-term and long-term debt       (72,399)     (28,984)
  Interests cashed (paid)                        (3,019)         (57)
  Change in minority interests                        5            -
  Increase in share capital and reserves         99,844       (3,588)
  Change in cash generated by
  financing activities                           24,431      (32,629)

  Increase (decrease) in cash on hand, bank deposits
  and securities                                 38,876       (2,873)

  Cash and cash equivalents, beginning of year   67,120        62,448

  Cash and cash equivalents,
  end of period/ year                           105,996        59,575


DATASOURCE: Ducati Motor Holding S.p.A.



CONTACT:  For further information, please contact: Federico Strano,

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

Ducati, 3, Bologna 40132, Italy, e-mail: , Main

Tel: [phone], Direct Tel: [phone]

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