In guidance issued for investors at the beginning of February, KTM Industries AG, the holding company that controls the majority of the shares in KTM AG, the KTM and Husqvarna branded motorcycle production business, is projecting in the region 7 to 9 percent compound annual growth of revenue and production of some 300,000 motorcycles in 2021 (including those made by Baja in India and elsewhere) – close to a 50 percent increase on sales achieved in 2016.
Having made a successful primary listing debut on the Swiss Stock Exchange SIX in Zurich in November, as the second largest Austrian company listed there (KTM Industries AG group shares can still be traded on the Vienna Bourse), preliminary postings at the end of January show the group forecasting record results for 2016.
Revenues of 1,343.0 m euro are 10 percent up on 2015 (1,223.6 m euro), with EBIT improved to 122.3 m euro (+8 percent from 112.9 m euro in 2015); the preliminary result after taxes increased from 65.0 m euro to 83.8 m euro (+29 percent). In 2016 all operational divisions are said to have increased revenues as well as earnings.
Combined KTM and Husqvarna motorcycle sales are put at 203,340 units for the twelve months, leaving KTM again claiming number one spot in manufacturing terms in Europe (in terms of units), ahead of BMW and Ducati [and Piaggio in terms of in-class motorcycles produced in Europe] and able to say that it is also “the fastest growing motorcycle brand worldwide. The export ratio is sustainably over 95%, with more than 50% sold outside Europe”.
The Pankl Racing Systems AG division closed 2016 with record results due to a very strong fourth quarter, with the new Formula 1 regulations bringing a further boost – KTM took its shareholding in Pankl from 55.9 percent to 94.5 percent by the end of 2016.
In 2016 WP AG “equipped a new set-up with updated exhaust production at its Munderfing, Austria facility, completing its long-term modernisation project. Through the closer connection to KTM AG, further growth of the vehicle group is secured.
The group hired an additional 516 employees in 2016, 428 of them in Austria, taking the group’s global employee head count to 5,069 people, 3,916 of them in Austria and about 15% of the total described as being in R&D roles.
The group made total investments of 144 m euro in 2016, in model development, operating facilities and infrastructure, including the exhaust production and motorsports centre in Munderfing, Austria, the extension of the production capacities in the KTM headquarters in Mattighofen and their new high performance drivetrain production facility at Pankl in Kapfenberg.
The business year under review was also characterised by additional acquisitions of shares in Pankl Racing Systems AG, which thereby strengthens its strategic position effectively within the KTM Industries Group. KTM Industries AG increased its current share in Pankl Racing Systems AG from previously 55.9% to 94.5%.
Based on the order situation at the end of January, the company said that it expects further organic growth in its core areas in 2017, with investment in new models, infrastructure and development further increased.
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KTM Motorsport
Among the investments made in 2016 was completion of an all-new 12m euro race department facility, opened in October 2016.
The company says that since its first World Championship title in 1974 (Gennadij Moiseev, MX 250), the brand has up to now earned 269 more World Championship titles and 15 consecutive Dakar Rally victories. “In the last two seasons we have taken the final big title in off-road motorsports, first place in the Supercross World Championship; now, after an early victory in the 2016 Moto3 World Championship, KTM is entering Moto2 in 2017 - the intermediary category of road racing and the next step towards the premiere MotoGP class”.
Stefan Pierer, CEO of the KTM Group, said: “In 1992 KTM Racing was still a single small workshop, and successfully tackled Rally and Motocross alongside the initial niche of Enduro under the strong leadership of Heinz Kinigadner. Meanwhile, since Pit Beirer took over our motorsport in 2006, the team has grown to more than 300 employees worldwide and employs more than 60 factory riders. Five percent of our annual sales revenues flow into our motorsport operations, and we are Europe’s biggest sport motorcycle manufacturer”.
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| With an area of 18,000 sq m, KTM’s new Motorsport facility is located directly behind KTM’s engine factory in Munderfing and is flanked by the new KTM Logistic Center and the WP Group |
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Husky +43 percent in 2016
Husqvarna has recorded a third consecutive year of record breaking sales, reaching total global sales of 30,700 units during the 12 months to December 31st 2016 – putting unit and turnover growth at +43 percent.
In fact, the business has come close to doubling both their production and turnover in the last two years.
This result follows the 32% gain in bikes sales during 2015 and “underlines the brand’s positive strategy of growth. Generating the largest ever turnover in the brand’s history at the end of 2015, Husqvarna’s annual, worldwide turnover increased significantly in 2016, reaching more than 200 million euros”.
2016 saw Husqvarna successfully launch the all-new 2017 line-up of FE and TE Enduro models. In addition, the new 701 Enduro and 701 Supermoto models “with the latest class-leading engine technology” were also released during the second half of the year.
Husqvarna completed their range of motocross bikes with the introduction of the 2016 TC 50 and TC 65 models. Together with the TC 85 and an extensive line-up of full-sized 2-stroke and 4-stroke models, Husqvarna now offers a complete range of nine motocross bikes.
In 2016 Husqvarna also unveiled the serial production version of the VITPILEN 401 and the SVARTPILEN 401 – the brand’s first “Real Street” motorcycles, slated for showroom availability late 2017.
