Ducati Motor Holding Announces Third Quarter 2003 Results

Ducati Motor Holding Announces Third Quarter 2003 Results
- Highest Third Quarter Unit Sales and Registrations Ever -


BOLOGNA, Italy, Nov. 5  /PRNewswire-FirstCall/ -- Ducati Motor Holding S.p.A. ,
a leading manufacturer of high performance motorcycles, today announced
financial results for the third quarter and nine months, ended September 30,
2003.

For the third quarter of 2003, unit sales were 6,865, an 18.8% increase over the
same period in 2002, the highest number of motorcycles ever sold by the Company
in a third quarter. Revenues for the period were Euro 75.3 million, up 24.7%
excluding forex effects, (or 20.5% including forex effects) over the same period
in 2002.

Third quarter revenues from motorcycles for the period increased 26.6% excluding
forex effects, (or 22.4% including forex effects) to Euro 55.9 million and
represented 74.2% of revenues. Motorcycle-related products, including spare
parts, technical accessories and apparel, increased 17.7% excluding forex
effects (or 13.2% including forex effects) to Euro 18.9 million over the
comparable period in the previous year.

Gross margin was 37.7% of revenues versus 41.4% in the period, mainly due to a
negative motorcycle mix and forex effects. Sales costs represented 24.3% of
sales versus 34.2% in the period last year, representing a decrease of Euro 3.1
million, as a result of the Company's strict cost controls. EBITDA was Euro 6.7
million (or Euro 5.0 million including forex effects) versus zero in the period
of the previous year.

In the third quarter of 2003, pre-tax loss was Euro 5.4 million versus a loss of
Euro 11.1 million last year. The improvement of Euro 5.7 million was mainly due
to higher EBITDA and lower financial charges.

For the third quarter, unofficial Ducati worldwide registrations, a measure of
retail sales, were up 10% versus the same period last year, in a market which
grew 7%. In particular, increases were up in Italy 21%, the US up 19%,
non-subsidiary importer countries up 13%, France up 9% and Benelux Countries up
8%. Registrations were down 3% in Germany, down 5% in the UK and down 9% in
Japan.

"Ducati has posted very strong results for the third quarter of 2003, confirming
the improving trend during the course of the year thanks to our popular new
product introductions and the effect of our savings programs," said Federico
Minoli, Ducati Chairman and Chief Executive Officer. "The Multistrada, in
particular, continues to break records, having sold 4,762 units in six months
since its launch, and we are increasing our sales target to 5,500 units. Also,
the new Monster S4R has had a great success having sold over 2,200 units in five
months. Just last week in Tokyo, we unveiled prototypes of the Sport Classic
dream bike, a new concept of thoroughly modern motorcycles that capture the
essential beauty, timeless style and emotion of the original Ducati sport bikes
of the 1970's.  The PaulSmart, GT and Sport are all powered by the advanced
Desmo 1000 DS engine. Depending on the market reaction and ensuing demand, we
will announce a production timeline.

"On the racetrack, we are very pleased with our successes as well -- official
Ducati Fila racer Neil Hodgson won the riders title in the World Superbike
Championship at Assen, in Holland, bringing Ducati's total to ten and
underlining the extraordinary performance of our new 999 Testastretta Superbike.
The MotoGP season ended in Valencia on November 2 in style, with Loris Capirossi
finishing on the podium. The final standings in the Rider's Championship sees
Loris and Troy Bayliss finishing in fourth and sixth places respectively. So,
additionally, after an absence of 30 years, Ducati took second place in the
Constructors' World Championship, bringing to a close a spectacular season,"
added Minoli. "What a superb result - congratulations and thanks to the riders,
to their teams and of course to all our fans."

For the first nine months, unofficial Ducati worldwide registrations, a measure
of retail sales, were down 5% versus the period last year, with the US down 20%,
the UK down 11%, Japan down 11%, France down 7%, Germany down 2%, Italy down 1%,
while the Benelux Countries grew 6% and Non-subsidiary countries were up 8%.
This is a notable recovery after declines of 18% and 4% in the first and second
quarter of 2003, respectively.

First nine months 2003 revenues of Euro 284.6 million, were down 0.7% excluding
forex effects, (or down 4.8% including forex effects) versus the period in 2002.
EBITDA was Euro 37.8 million excluding forex effects (or Euro 30.8 million
including forex effects) versus Euro 38.8 million in the first nine months of
2002. At EBT level, there was a loss of Euro 7.0 million versus a gain of Euro
3.7 million in the 2002 period mainly due to adverse forex, restructuring and
depreciation costs.

"The third quarter improvement, driven by increased sales as well as reduced
product and structure costs, brings us in line with our expectations for the
full year of a flat top line versus year ago -- excluding forex effects -- and a
positive bottom line. However, after the slow start to the year and the
subsequent recovery, the outlook for 2003 remains challenging. Our ability to
meet our targets will largely depend on forex non further deteriorating and the
sustained growth of our relevant market," said Enrico D'Onofrio, Ducati Chief
Financial Officer.

The Company's net debt at September 30, 2003 was Euro 112.2 million, up versus
the Euro 100.4 euro million at the same date a year earlier mainly due to lower
EBITDA. The company's gearing ratio was 73% at September 30, 2003 versus 64% at
the same date a year earlier.

At the end of September, the Company has re-purchased 293,235 shares, equivalent
to Euro 391,225 or 0.185% of its stock capital.

A discussion by Ducati management of the third quarter 2003 results is available
at http://www.ducati.com/ under Company and then Investor Relations, and can be
accessed until mid-February 2004 under Webcast of Results at the bottom of the
IR Press Release Schedule section.

Founded in 1926, Ducati builds racing-inspired motorcycles characterized by
unique engine features, innovative design, advanced engineering and overall
technical excellence. Ducati has won twelve of the last fourteen World Superbike
Championship titles and more individual victories than the competition put
together. The Company produces motorcycles in four 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 40 countries worldwide, with a primary focus in the
Western European and North American markets. 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
                              September   September  September   September
                                   30,        30,         30,         30,
                                  2003       2002        2003        2002

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

      Motorcycles         euro  55,923  euro 45,680   $65,161     $53,226
      Spare Parts,
       Accessories, Apparel     18,890       16,687    22,011      19,444
      Miscellaneous Other          530          172       618         200

  Total net sales         euro  75,343  euro 62,539   $87,790     $72,870


  Ducati Units
  Motorcycle shipments:                              % Change

      North America                863          499    72.9%
      Main European market       4,025        3,696     8.9%
      Japan                        793          764     3.8%
      Rest of World              1,184          820    44.4%

  Total                          6,865        5,779    18.8%


  Motorcycle product mix:                            % Change

      Sport Segment
       (Superbike &
       Supersport)               1,381        2,109   (34.5%)
      Sport Naked                3,449        3,177     8.6%
      Sport Touring                393          493   (20.3%)
      Multistrada                1,642            0      n.s.

  Total                          6,865        5,779    18.8%


  Unofficial Motorcycle
   Registrations:                                    % Change

      North America              1,470        1,235    19.0%
      Main European market       6,009        5,444    10.4%
      Japan                        869          959    (9.4%)
      Rest of World              1,355        1,194    13.5%

  Total                          9,703        8,832     9.9%


               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,
                                   2003      2002        2003       2002

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

      Motorcycles       euro   229,749 euro 242,067   $267,704    $282,056
      Spare Parts,
       Accessories, Apparel     53,731       55,789     62,607      65,005
      Miscellaneous Other        1,120        1,039      1,305       1,211

  Total net sales      euro    284,600 euro 298,895   $331,616    $348,272

  Ducati Units
  Motorcycle shipments:                               % Change

      North America              2,917        2,825      3.3%
      Main European market      18,065       18,919     (4.5%)
      Japan                      2,256        2,827    (20.2%)
      Rest of World              5,103        4,466     14.3%

  Total                         28,341       29,037     (2.4%)


  Motorcycle product mix:                             % Change

      Sport Segment
       (Superbike &
       Supersport)               8,896       11,064    (19.6%)
      Sport Naked               13,257       15,331    (13.5%)
      Sport Touring              1,426        2,642    (46.0%)
      Multistrada                4,762            0       n.s.

  Total                         28,341       29,037     (2.4%)

  Unofficial Motorcycle
   Registrations:                                     % Change

      North America              3,962        4,961    (20.1%)
      Main European market      21,507       22,073     (2.6%)
      Japan                      2,784        3,125    (10.9%)
      Rest of World              4,695        4,358      7.7%

  Total                         32,948       34,517     (4.5%)


                Consolidated Statements of Operations Data
(Euro in thousands, US$ in thousands, except per share and share amounts)

                  Three Months Ended        Three Months Ended
               Sept. 30,    Sept. 30,    Sept. 30,   Sept. 30,    Percent
                    2003         2002         2003       2002     Change

  Net Sales   euro 75,343  euro 62,539      $87,790     $72,870      20.5%
  Cost of
   goods sold     (46,975)     (36,623)     (54,735)    (42,673)
  Gross Profit     28,368       25,916       33,054      30,197       9.5%
  Other
   operating
    revenues        4,268        2,450        4,973       2,855

  SG&A expenses   (27,415)     (28,296)     (31,944)    (32,970)
  Other operating
   income/
   (expense), net    (117)         (33)        (136)        (38)
  Depreciation &
   amortization    (9,690)      (8,888)     (11,291)    (10,356)

  Operating
   income/(loss)   (4,586)      (8,851)      (5,344)    (10,312)      n.s.

  Financing
   expense, net      (827)      (2,250)        (964)     (2,622)

  Other non-
   operating
   income/
   (expense), net     (32)         (20)         (37)        (23)

  Profit/(loss)
   before income
   taxes           (5,445)     (11,121)      (6,345)    (12,957)      n.s.

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

                                                                     Percent
  Other Financial Data                                                Change
  Motorcycles Produced
   (Units)          7,834        8,413                                (6.9%)
  Motorcycles Sold
   (Units)          6,865        5,779                                18.8%
  Unofficial
   Registrations
   (Units)          9,809        8,832                                11.1%
  EBITDA            5,033           17        5,864          20        n.s.
  EBITDA Margin      6.7%         0.0%

  Note: On September 30, 2003 US$1= 0,8582 Euros


                Consolidated Statements of Operations Data
(Euro in thousands, US$ in thousands, except per share and share amounts)

                     Nine Months Ended      Nine Months Ended
                  Sept. 30,   Sept. 30,   Sept. 30,   Sept. 30,    Percent
                      2003         2002        2003        2002     Change

  Net Sales   euro 284,600 euro 298,895    $331,616    $348,272      (4.8%)
  Cost of
   goods sold     (184,429)    (176,810)   (214,897)   (206,019)
  Gross Profit     100,171      122,085     116,719     142,253     (17.9%)
  Other
   operating
    revenues        16,324        7,961      19,021       9,276
  SG&A expenses    (85,411)     (90,040)    (99,521)   (104,915)
  Other operating
   income               (6)      (1,166)         (7)     (1,359)
  Depreciation &
   amortization    (28,119)     (24,533)    (32,765)    (28,586)

  Operating
   income/(loss)     2,959       14,307       3,447      16,669      (79.3%)

  Financing
   expense, net     (5,785)     (10,618)     (6,741)    (12,372)
  Other
   non-operating
   income/
   (expense), net   (4,178)         (20)     (4,868)        (23)

  Profit/(loss)
   before income
   taxes            (7,004)       3,669      (8,162)      4,274         n.s.

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

                                                                  Percent
  Other Financial Data                                            Change
  Motorcycles
   Produced
   (Units)          26,951       30,923                           (12.8%)
  Motorcycles
   Sold (Units)     28,341       29,037                            (2.4%)
  Unofficial
   Registrations
   (Units)          32,948       34,517                            (4.5%)
  EBITDA            30,844       38,820      35,939      45,232   (20.5%)
  EBITDA Margin      10.8%        13.0%


  Note: On September 30, 2003 US$1= 0,8582 Euros


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

                                       Three Months        Three Months
                                          ended               ended
                                    September 30, 2003   September 30, 2002

                                           euro         %      euro      %

  Current assets
  Cash and cash equivalents               16,866             16,606
  Trade receivables, net                  64,706             61,135
  Inventories                            108,854            111,856
  Other current assets                    18,858             17,617
  Total current assets                   209,284    48.6%   207,214   50.0%

  Non current assets
  Property, plant and equipment-net       68,779             63,082
  Intangible fixed assets, net           126,804            128,759
  Equity investments                          12                  1
  Other long-term assets - Credit
   Link/ABS                               24,818             15,000
  Other long-term assets                     584                646
  Total non current assets               220,997    51.4%   207,488   50.0%

  Total assets                           430,281   100.0%   414,702  100.0%


  Current liabilities
  Short-term bank borrowings              41,091             20,434
  Current portion of long-term debt        4,960              2,822
  Accounts payable - trade                79,472             83,773
  Income and other taxes payables          4,798              5,042
  Other current liabilities               17,823             17,609
  Provisions for risks and charges -
   current portion                         9,543              9,421
  Total current liabilities              157,687    36.6%   139,101   33.5%

  Long-term liabilities
  Long-term debt, net of current
   portion                                92,220             91,000
  Employees' leaving entitlement           8,170              6,686
  Deferred income taxes                       35                 35
  Other long-term liabilities             15,607             17,737
  Provision for risks and charges -
   long term portion                       3,998              3,262
  Total long-term liabilities            120,030    27.9%   118,720   28.6%

  Total liabilities                      277,717            257,821

  Total shareholders' equity             152,564    35.5%   156,881   37.9%

  Total liabilities and shareholders'
   equity                                430,281     100%   414,702    100%

  Memo: Net consolidated financial
   position                             (112,194)          (100,387)


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

                                       Three Months          Three Months
                                           ended                 ended
                                   September 30, 2003     September 30, 2002

                                          US$          %    US$           %

  Current assets
  Cash and cash equivalents               19,652            19,349
  Trade receivables, net                  75,396            71,235
  Inventories                            126,837           130,335
  Other current assets                    21,973            20,527
  Total current assets                   243,858   48.6%   241,446    50.0%

  Non current assets
  Property, plant and equipment-net       80,141            73,503
  Intangible fixed assets, net           147,752           150,030
  Equity investments                          14                 1
  Other long-term assets - Credit
   Link/ABS                               28,918            17,478
  Other long-term assets                     680               753
  Total non current assets               257,505   51.4%   241,765    50.0%

  Total assets                           501,363  100.0%   483,211   100.0%


  Current liabilities
  Short-term bank borrowings              47,879            23,810
  Current portion of long-term debt        5,779             3,288
  Accounts payable - trade                92,601            97,612
  Income and other taxes payables          5,591             5,875
  Other current liabilities               20,767            20,518
  Provisions for risks and charges -
   current portion                        11,119            10,977
  Total current liabilities              183,736   36.6%   162,080    33.5%

  Long-term liabilities
  Long-term debt, net of current
   portion                               107,455           106,033
  Employees' leaving entitlement           9,520             7,791
  Deferred income taxes                       41                41
  Other long-term liabilities             18,185            20,667
  Provisionfor risks and charges - long
   term portion                            4,658             3,801
  Total long-term liabilities            139,859   27.9%   138,333    28.6%

  Total liabilities                      323,595           300,413

  Total shareholders' equity             177,768   35.5%   182,798    37.9%

  Total liabilities and shareholders'
   equity                                501,363    100%   483,211     100%

  Memo: Net consolidated financial
   position                             (130,728)         (116,970)


DATASOURCE: Ducati Motor Holding S.p.A.



CONTACT:  Christopher Spira, Director, Investor Relations and Corporate

Communications of Ducati Motor Holding S.p.A., main, [phone], direct,

[phone], fax, [phone], 



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

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