Ducati Motor Holding Announces First Quarter 2004 Results

Ducati Motor Holding Announces First Quarter 2004 Results
- Strong sales and EBITDA growth and return to profitability - 


BOLOGNA, Italy, May 14  /PRNewswire-FirstCall/ -- Ducati Motor Holding S.p.A.
(NYSE: DMH; Borsa Italiana S.p.A: DMH), a leading manufacturer of high
performance motorcycles, today announced financial results for the first
quarter ended March 31, 2004.

For the first quarter of 2004, revenues were Euro 100.3 million up 23.4%
including forex (or up 26.3% excluding forex) over the same period in 2003. The
improvement was mainly due to a 22.1% increase in unit sales and a 41,2%
increase of accessories and apparel sales, despite continuing adverse forex.
Revenues from Ducati motorcycles for the period increased 22.1% to Euro 80.0
million and represented 79.8% of total revenues. Motorcycle-related products,
including spare parts, technical accessories and apparel, increased 23.5% to
Euro 18.8 million over the comparable period in the previous year.

Gross margin was 35.9% of revenues including forex effects (or 37.2% excluding
forex effects) versus 36.9% in the same period a year ago, due to the negative
foreign exchange impact more than offsetting margin improvements. Sales costs
represented 19.1% of sales versus 21.4% in the period last year.

EBITDA was a Euro 12.3 million, up 37.6% including forex (or up 54.8% excluding
forex) representing 12.3% of revenues, versus 11.0% in the period of the
previous year.

Pre-tax profit of the Ducati Group was Euros 0.8 million in the first quarter
of 2004, compared with a loss of Euros 6.2 million in the first quarter of
2003, including the impact of a one-off Euro 3.5 million restructuring charge.

Unofficial Ducati worldwide registrations, a measure of retail sales, were up
11% versus the first quarter of last year, in a market growing 3%.
Registrations were up 39% in the US, up 26% in Italy, up 13% in non-subsidiary
country and up 8% in the UK. Decreases were recorded in the Benelux Countries
down 2%, in France down 7%, Germany down 10% and in Japan down 18%.

The Company's net debt at March 31, 2004 was Euro 121.2 million, down versus
the Euro 123.6 million at the same date a year earlier, and up versus Euro
117.2 million at December 31, 2003. The company's gearing ratio was 76% at
March 31, 2003 versus 79% at the same date a year earlier and 74% at December
31, 2003.

"2004 has got off to a great start," said Federico Minoli, Ducati Chairman and
Chief Executive Officer. "All key indicators are positive: unit sales,
registrations, profitability and cash are going in the right direction. Our
products are meeting with enthusiasm in the market and momentum is building,
and we look forward with great excitement to seeing all our fans and friends at
World Ducati Week, from May 17th to 23rd, where we are expecting record
attendance."

"The year started well but we cannot be complacent," said Enrico D'Onofrio,
Ducati Chief Financial Officer. "2004 remains a year of consolidation and we
have to work hard to reach our targets of sales growth, return to profitability
and net debt improvement."

Separately, the company announced that Fabrizio Nardi, Group Financial
Controller, will assume the role of Director of Investor Relations in addition
to his current responsibilities. He takes over from Christopher Spira who will
work on other projects within the group.

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 five market segments
which vary in their technical and design features and intended customers:
Superbike, Supersport; Monster, Sport Touring and Multistrada. 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
twelve of the last fourteen 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 Ended       Three Months Ended
                                   Mar, 31       Mar, 31   Mar, 31   Mar, 31
                                    2004          2003       2004     2003

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

      Motorcycles            euro  80,014  euro   65,518   $97,809  $80,089
      Spare Parts,
       Accessories, Apparel        18,824         15,244    23,010   18,634
      Miscellaneous Other           1,462            504     1,788      617

  Total net sales            euro 100,300  euro   81,266  $122,607  $99,340


  Ducati Units
                                                          % Change

         North America              1,280            836      53.1%
         Main European market       5,721          4,700      21.7%
         Japan                        533            631     (15.5%)
         Rest of World              1,936          1,587      22.0%

  Total                             9,470          7,754      22.1%


  Motorcycle product mix:                                 % Change

         Sport Segment (Superbike &
          Supersport)               3,331          3,683      (9.6%)
         Sport Naked                4,352          3,497      24.4%
         Sport Touring                856            492      74.0%
         Multistrada                  931             82        na

  Total                             9,470          7,754      22.1%


  Unofficial Motorcycle Registrations:                    % Change

         North America              1,325            950      39.5%
         Main European market       6,150          5,582      10.2%
         Japan                        727            884     (17.8%)
         Rest of World              1,287          1,139      13.0%

  Total                             9,489          8,555      10.9%


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


                  Three Months Ended        Three Months Ended

                  Mar, 31      Mar, 31      Mar, 31      Mar, 31    Percent
                     2004         2003         2004         2003      Change

  Net
   Sales       euro 100,300  euro 81,266     $122,607      $99,340     23.4%
  Cost of
   goods sold       (64,269)     (51,244)     (78,562)     (62,641)
  Gross Profit       36,031       30,022       44,045       36,699     20.0%
  Other operating
   revenues           5,835        6,102        7,133        7,459
  SG&A expenses     (29,291)     (26,873)     (35,805)     (32,850)
  Other operating
   income              (234)        (205)        (286)        (251)
  Depreciation &
   amortization      (9,659)      (9,184)     (11,808)     (11,227)

  Operating
   income/(loss)      2,682         (138)       3,279         (170)      na

  Financing expense,
   net               (1,916)      (2,439)      (2,342)      (2,981)

  Other non-operating
   income/(expense),
   net                  (10)      (3,584)         (12)      (4,381)

  Profit/(loss)
   before income
   taxes                756       (6,161)         925       (7,532)      na

  Shares
   outstanding  158,500,963  158,500,963  158,500,963  158,500,963

                                                                    Percent
  Other Financial                                                    Change
   Data
  Motorcycles
   Produced (Units)  11,238       10,366                                8.4%
  Motorcycles
   Sold (Units)       9,470        7,754                               22.1%
  Unofficial
   Registrations
   (Units)            9,489        8,555                               10.9%
  EBITDA             12,331        8,962       15,073      10,954      37.6%
  EBITDA Margin        12.3%        11.0%

  Note: On March 31, 2004 US$1= 0,7995 Euros


                       Ducati Motor Holding S.p.A.
                Consolidated Statements of Operations Data
                           (Euro in thousands)


                                         March 31, 2004    March 31, 2003

                                         euros       %      euros      %

  Current assets
  Cash and cash equivalents              26,168            23,429
  Trade receivables, net                106,347            84,443
  Inventories                           119,129           131,922
  Other current assets                   17,963            22,317
  Total current assets                  269,607    54.5%  262,111    54.8%

  Non current assets
  Property, plant and equipment-net      65,089            70,385
  Intangible fixed assets, net          122,671           130,513
  Equity investments                         12                12
  Other long-term assets                 37,160            15,581
  Total non current assets              224,932    45.5%  216,491    45.2%

  Total assets                          494,539   100.0%  478,602   100.0%


  Current liabilities
  Short-term bank borrowings             70,884            55,746
  Current portion of long-term debt       5,532             3,146
  Accounts payable - trade              112,726           110,715
  Income and other taxes payables        12,976             6,264
  Other current liabilities              20,980            23,049
  Provisions for risks and charges -
   current portion                        4,824             8,637
  Total current liabilities             227,922    46.1%  207,557    43.4%

  Long-term liabilities
  Long-term debt, net of current
   portion                               81,890            86,000
  Employees' leaving entitlement          8,648             7,459
  Deferred income taxes                      31                35
  Other long-term liabilities            14,075            17,099
  Provision for risks and charges -
   long term portion                      2,518             3,998
  Total long-term liabilities           107,162    21.7%  114,591    23.9%

  Total liabilities                     335,084           322,148

  Total Group shareholders' equity      159,455    32.2%  156,454    32.7%

  Total liabilities and shareholders'
   equity                               494,539     100%  478,602     100%


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


                                         March 31, 2004    March 31, 2003

                                          US$       %       US$       %

  Current assets
  Cash and cash equivalents              31,988            28,640
  Trade receivables, net                129,998           103,223
  Inventories                           145,623           161,261
  Other current assets                   21,958            27,280
  Total current assets                  329,567    54.5%  320,404    54.8%

  Non current assets
  Property, plant and equipment-net      79,565            86,039
  Intangible fixed assets, net          149,953           159,539
  Equity investments                         15                15
  Other long-term assets                 45,424            19,046
  Total non current assets              274,957    45.5%  264,639    45.2%

  Total assets                          604,524   100.0%  585,043   100.0%


  Current liabilities
  Short-term bank borrowings             86,649            68,144
  Current portion of long-term debt       6,762             3,846
  Accounts payable - trade              137,796           135,338
  Income and other taxes payables        15,862             7,657
  Other current liabilities              25,646            28,175
  Provisions for risks and charges -
   current portion                        5,897            10,558
  Total current liabilities             278,612    46.1%  253,718    43.4%

  Long-term liabilities
  Long-term debt, net of current
   portion                              100,102           105,126
  Employees' leaving entitlement         10,571             9,118
  Deferred income taxes                      38                43
  Other long-term liabilities            17,205            20,902
  Provision for risks and charges -
   long term portion                      3,078             4,887
  Total long-term liabilities           130,994    21.7%  140,076    23.9%

  Total liabilities                     409,606           393,794

  Total Shareholders' equity            194,918    32.2%  191,249    32.7%

  Total liabilities and shareholders'
   equity                               604,524   100.0%  585,043   100.0%


DATASOURCE: Ducati Motor Holding S.p.A.



CONTACT:  Fabrizio Nardi, Investor Relations of Ducati Motor Holding

S.p.A., or [phone], or [phone], or fax, [phone], or





Web site:  http://www.ducati.com/ 

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