KTM has announced that its first quarter 2016 sales were up by +26.9 percent over the first three months of 2015, at 41,858 units; with revenue up by +26.7 percent to Euro 249.5m for the first quarter and EBIT (Earnings Before Income Tax) up by +46.4 percent at Euro 21.7m - an EBIT margin of 8.7 percent.
Meanwhile KTM’s parent company has announced that it wants to buy back the remaining 0.6 percent of the shares in KTM AG that are still traded on the Vienna based "Dritten Markt" - the third tier of the Austrian stock exchange, so that the parent company can concentrate on the listing of Cross Industries AG on Vienna's Prime Market in the future "in order to create a more streamlined capital market structure".
Stefan Pierer's Cross Industries owns 51.4 percent of the shares in KTM AG and has issued a public purchase offer of Euro 122,50 per share for the remaining 0.6 percent "Legacy Ownership" of KTM AG shares that are not currently owned either by Cross or Indian partner Bajaj (which currently holds some 48 percent of the shares in the group).
The plan also affects shares in WP Suspension, 0.29 percent of which are traded on the "Dritten Markt" stock exchange (the company was only listed there in April 2015) with 99.71 percent of WP owned by Cross Industries. Those WP and KTM "Legacy Owners" will have the option of remaining share holders when Cross completes the de-listing of KTM AG, should they choose not to sell.
The Cross Industries group also owns Husqvarna; the KISKA design consultancy that is responsible for much of KTM’s and Husqvarna's design work; Pankl Products, which specialises in developing and manufacturing engine and drivetrain components for racing cars, high performance vehicles and the aerospace industry; Wethje Carbon Composites, which specialises in automotive and aerospace products such as aircraft interior components and fittings; and Durmont, a specialist automotive and commercial/public buildings carpet and tufted floor coverings manufacturer.
In other Bajaj/KTM news the companies have agreed that its Indian partner will "extend its distribution network to include Indonesia". The arrangement involves KTM branded DUKE and RC motorcycles up to a displacement of 400 cc, which are developed and assembled by the successful Austrian-Indian joint venture. The motorcycles will be distributed through a chain of KTM dealerships, to be managed by Bajaj.
"The decision to emphasize our sales activities in the South-East Asian distribution network is the logical next step in our long-term oriented strategy. It supports our presence in the price sensitive Indonesian market by using synergies from our strong alliance with Bajaj", explained Hubert Trunkenpolz, CSO, KTM AG.
Rakesh Sharma, President International Business of Baja Auto, added that "Bajaj has successfully established the KTM brand in India with an exclusive channel of 250 KTM stores. For Bajaj Auto this agreement to distribute sub 400 cc KTM bikes in Indonesia is a major step forward. We will endeavour to strongly establish this premium European brand in Indonesia".
The existing business partnership with the current Indonesian importer P.T. Jaya Selaras Sejahtera will remain, but now fully focussed on the model range above 400cc.
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