First Nine Months 2007 results

Nov 05 2007 10:44
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The Board of Directors approves the quarterly report at 30 September 2007

Milan, 5 November 2007 – At a meeting today in Milan chaired by Roberto Colaninno, the Board of Directors of Piaggio & C. S.p.A. examined and approved the quarterly report at 30 September 2007. The Piaggio Group continued its positive performance in the third quarter of 2007, in both the two-wheeler business (net sales +6.1% YoY) and the light transport vehicle business (+7.1% YoY).

In the first nine months of 2007 the Group sold 569,300 vehicles, an improvement of +4.1% on the first 9 months of 2006, which included a non-recurring delivery of 24,300 scooters to the Italian Post Office.
Consolidated net sales in the first nine months of the year rose to € 1369.8 million, an improvement of 6.5% on € 1285.8 million in the year-earlier period. Revenues made significant progress in all the Group core businesses. Specifically, excluding the spares and accessories business, motorcycle net sales amounted to € 231.7 million (+12.2% YoY), scooter net sales to € 718.1 million (+3% YoY), while the light transport vehicles (LTV) business unit reported net sales of € 255.5 million (+7.6% YoY), of which € 163.8 million by the Indian company PVPL, an improvement of 15.3% compared with the year to 30 September 2006. Net sales in spare parts and accessories continued to strengthen (€ 150.3 million, +12.4% YoY).

The industrial gross margin gained 2.3% to reach € 412.7 million, for a return on net sales of 30.1%.
Consolidated EBITDA in the first nine months rose to € 200.4 million, up 9.2% from € 183.5 million in the year-earlier period. The continuous YoY improvements in quarterly EBITDA in 2007 reflected on-going gains in operating efficiency. The EBITDA margin for the first nine months of 2007 was 14.6%, a YoY increase of 0.3 percentage points compared with the year to 30 September 2006.

Operating profit for the nine months was positive at € 138.3 million, an improvement of 16.7% over € 118.5 million in the year-earlier period. Profitability strengthened from the previous year (+0.9 percentage points), to reach 10.1% of net sales. The Group posted a net financial charge of € 23.8 million (€ 21.0 million in the first nine months of 2006), of which € 11.3 million relating to the parent company bond issued in 2005.
Income tax for the first nine months amounted to € 48.1 million (€ 19.9 million for the year to 30 September 2006); this included an accounting adjustment of € 20.5 million to deferred tax assets provided in previous years.

Net profit for the year to 30 September 2007 was € 66.4 million (-14.5% on the result for the first nine months of 2006).
Net debt decreased to € 259.5 million, down from the figure at 30 June 2007 (€ 277.1 million) and at the end of 2006 (€ 318.0 million). The positive performance in cash flow from operating activities, which financed dividend payouts, own-share buybacks and investments, produced a net cash flow of € 58.8 million since the
beginning of the year. Shareholders' equity at 30 September 2007 was € 478.0 million, compared with € 438.7 million at 31 December 2006.

Significant events after 30 September 2007

On 9 October 2007 the project for the production of Vespa scooters for sale on the local market was inaugurated in Vietnam at a ceremony during which the Governor of the Province of Vinh Phuc, Nguyen Ngoc Phi, presented the manufacturing licence to the Group’s top managers.
On 15 October, Tommaso Giocoladelli was named Chief Executive Officer and President of Moto Guzzi S.p.A., while Daniele Bandiera was confirmed as Moto Guzzi Chairman.


The results for the first nine months of 2007 are in line with targets. Consequently, the Group is confident of continuing the growth and improvement programmes outlined in its 2007-2009 business plan and reaching the plan objectives.

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