KTM Rescue: New Beginning and Challenges for Pierer Mobility 2025
Following the rescue of the insolvent motorcycle manufacturer KTM, the publicly listed parent company Pierer Mobility is cautious about the business development for the entire year 2025. Revenue is expected to remain significantly below the previous year due to production interruptions. However, due to the ongoing demand, the inventory at KTM itself as well as at dealers and importers should normalize, the company announced on Wednesday.
Full Production at KTM to Resume at the End of July 2025
The sales volume achieved despite the difficulties was "pleasing" and contributed to a reduction in inventory levels. In total, production was at a standstill for six months. The resumption of full production is planned for the end of July, "however, the backlogs cannot be compensated due to the seasonality of the business," writes Pierer Mobility.
KTM Sites in Austria Secured
The lack of operational performance weighed on the operating result (EBIT), which was reported at minus 1.184 billion euros in today's announcement of the final figures for 2024. A restructuring gain of 1.2 billion euros is expected to lift EBIT back into positive territory in 2025. Equity (2024: minus 193.7 million euros) should also turn "significantly into the high triple-digit million range" as a result. The production capacities are secured due to past investments, thus securing the sites in Mattighofen and Munderfing, according to the company.
In the course of the KTM rescue, co-owner Bajaj provided the necessary funds to pay the quota to the creditors of KTM AG and its subsidiaries KTM Components GmbH and KTM Research & Development GmbH. 450 million euros were provided in the form of a loan from the Dutch Bajaj subsidiary Bajaj Auto International Holdings B.V., with an additional 150 million euros coming from Pierer Mobility. In total, 525 million euros are needed for the financing of the quota of the three financing plans.
Nearly 1.1 Billion Euro Loss in 2024
According to final results, Pierer Mobility recorded a revenue decline of 29.4 percent to 1.879 billion euros and a loss of 1.0799 billion euros in 2024. The result before taxes was minus 1.2766 billion euros. Net debt increased from 775.9 million to 1.642 billion euros, and equity fell to minus 193.7 million euros (2023: plus 909.3 million euros). The number of employees at the end of 2024 was 5,310 (minus 14.1 percent), of which 4,099 were employees in Austria.
(APA/Red)
This article has been automatically translated, read the original article here.