KTM Posts Profit Despite Low Sales

Most motorcycle manufacturers are struggling to survive the economic crisis, but this is certainly not KTM’s case. The Austrian manufacturer recently released its sales report for 2009, which clearly shows that despite a low sales volume, it was still able to make profits.

While sales of its motorcycles were down 16% compared to twelve months earlier, net profits were substantially improved. As of November 30, 2009, KTM achieved a 36.5% reduction in KTM inventories and 21.3% in dealer inventories from the previous year.

“The restructuring measures, which had to be implemented in the previous year, have already shown sustainable effects," said KTM’s CEO Stefan Pierer. "For example, total costs could be reduced by more than 30% in the first quarter compared to the previous year – we are, thus, able to make profits again, even if the sales volume is lower.”

Formerly the dominating brand in the Dakar Rally, KTM announced it was pulling out of the race in June 2009, after a rule change only allowed motorcycles with a maximum engine capacity of 450 cc to be used professional competitors from 2010. KTM motorcycle, unfortunately, use bigger engines. However, it was present in the 2010 competition.

"For several years, more and more of the top bikers have won specials or finished in the leading ten overall positions using under 450cc bikes,” the Amaury Sport Organisation (ASO), organizers of the 'South American Dakar' said in a statement. “Financially more accessible and more reliable than the older bikes of the previous generations and now more adapted to the demands of off-road rallies, the 450cc still have a deficit in performance that prevent them from reaching even higher ambitions. This difference will be totally erased for the 2011 Dakar, during which only bikes with engines under 450cc will be accepted."