Ducati announces profit

[Bob]

Ducati has reported a 2007 net profit of 13.3 million Euro – a significant turnaround from the reported 8.5 million Euro loss in 2006.

The Italian manufacturer has declared a target for 2008 of a 15% rise in sales "Our targets for 2008 are ambitious but within reach: a 15 percent rise in sales, a margin of 15 percent and a positive net financial position," Chief Financial Officer Enrico D'Onofrio said.

[Pex Adams]

I wonder how much of there funds go into their WSB and Motogp campaigns every year?

13.3 million euro's doesn't sound that great either - considering every man and his dog wanted a 1098

[James Deuce]

It's a tiny company. The NZ Post site at Petone is a bigger operation than Ducati.

[steveb64]

Ducati has reported a 2007 net profit of 13.3 million Euro – a significant turnaround from the reported 8.5 million Euro loss in 2006.

The Italian manufacturer has declared a target for 2008 of a 15% rise in sales "Our targets for 2008 are ambitious but within reach: a 15 percent rise in sales, a margin of 15 percent and a positive net financial position," Chief Financial Officer Enrico D'Onofrio said.

Achieved by either charging ridiculous prices for spares ($1200 for rings for 2 pistons for my 900), or just not carrying any spares for older bikes. I think the idea is to force riders to dump their old bikes to buy a new Ducati, rather than trading them in... Bastards.

[Pwalo]

I wonder how much of there funds go into their WSB and Motogp campaigns every year?

13.3 million euro's doesn't sound that great either - considering every man and his dog wanted a 1098

Don't forget it's only accounting. IFRC Ducati is part of the Fiat/Ferrari/who ever else is making a motorised vehicle in Italy this week conglomerate.

As Jim2 says they are a very small operation cf most other m/cycle manufacturers.

Their involvement in WSB and MotoGP is probably more important to them as far as branding goes than any of the other manufacturers. (Even if they do bend the rules a bit in WSB). They need to create an air of exclusivisity to maintain unit sales.

I am honsetly surprised that they make a profit at all. Monsters must be as cheap as chips to make, but their sports bikes must get close to being uneconomic to produce.

[bugjuice]

I wonder how much of there funds go into their WSB and Motogp campaigns every year?
that's where sponsorship helps out..


13.3 million euro's doesn't sound that great either - considering every man and his dog wanted a 1098
the way I see it, they've made €28.8m cos they recovered from the €8.3m loss and made profit.. no..?

[Finn]

Remember that this is Italy. I wonder what their real balance sheet looks like.

[Finn]

It's a tiny company. The NZ Post site at Petone is a bigger operation than Ducati.

Their bikes are the same colour too...

[deanohit]

Their bikes are the same colour too...

Hmmmm, Ducati postie bikes huh?
Now that I would like to see!

[Bullitt]

the way I see it, they've made €28.8m cos they recovered from the €8.3m loss and made profit.. no..?

No. Accounting profits only look over the period. They always start from zero.

[bugjuice]

oh.

[johan]

Good, they are making money again! Hopefully they'll lower the price on the 848 so that I can buy one (I wish).

[Ride it till the red]

Are these figures ever going to be accurate?
Would a company this big not use extremely clever accountants to write off profit against bullshit "expenses" to create low profit and therefore low tax?
Is Ducati owned by a firm that makes money on another brand? Possibly last years "loss" was used to write off against their tax?

Maybe?

[Bullitt]

From my experience accounting profits and taxable profits are quite different and often not related that closely. Companies always want to inflate accounting profit as it makes the company look better and makes funding easier whereas they want to reduce taxable profit so they have to pay less tax.

Very few people outside the company/their auditors/the tax department will ever see taxable profit so have to work with accounting profit.

No figure will ever be entirely accurate but accounting profit is as close as youll get to see.