Triumph Claims Record Profits

Sean Alexander
by Sean Alexander
According to the reader submitted news item that we posted on January 5th, Triumph is seeing some "Red Ink". However, that post was referring to a story which states: "A £1.1m operating profit in 2004 was eliminated by a £1.8m interest bill. Employees were cut by 12pc to 510 staff." In an apparent response to that article, Triumph sent this Press Release, stating that current revenues are UP by 30% for the first six months of Fiscal 2005.

MO's DISCLAIMER: As with ALL news items and/or company releases on "earnings", it is important to remember that they are interpretations of past events and can selectively report as much or as little of the "big picture" as their author chooses. Overall, I think Triumph is doing just fine. -Sean


Triumph Motorcycles' success continues

JANUARY 7, 2005 ~ Triumph Motorcycles, Ltd., the global parent of US distributor, Triumph Motorcycles (America), Ltd. remained on its strong growth path in the 2004 fiscal year that ended on June 30th 2004. Group revenues rose by 14% from $211m to $240m. Operating profit, before interest and taxes, grew to $2.8m.

Two years ago Triumph had a serious factory fire that disrupted production for six months. This contributed to a loss, before interest and tax, of $8.5m for the prior year that ended on June 30th 2003. The 2004 results reflect a full recovery from the fire.

Bloor Holdings Limited owns the Triumph Group. Bloor Holdings is a closely held private company with net assets of $517m.

Significant growth in sales

The successful launch of two new models - the Rocket III and Thruxton 900, a new marketing strategy and a restructuring of the dealer network has resulted in significant sales growth for Triumph.

Triumph's dealer restructuring program has resulted in higher sales per dealer and quicker stock turnover leading to significantly increased dealer profitability. In recognition of the impact of Triumph's new strategy in terms of sales, service and exposure, Triumph was awarded the 'British Brand of the Year' title at the 2004 Walpole British Excellence Awards.

Promising start to the current financial year

In the first 6 months of the current fiscal year, Triumph's global sales have increased over 30% and this trend is expected to continue.

Tue Mantoni, Commercial Director says, "Consumer reaction to our recently launched new models - the new Sprint ST and Speed Triple - has been superb and our dealers have received an exceptional number of deposits for both bikes."

As a result of the continued positive development, Triumph will increase overall production for the next financial year by more than 25%, taking production at the Hinckley facility to record levels.

Triumph Motorcycles (America) Ltd., is a wholly owned subsidiary of Triumph Motorcycles, Ltd., a manufacturer of Triumph motorcycles and accessories. Triumph Motorcycles (America) Ltd., is located in Newnan, GA and services the Triumph dealer organization throughout the United States, Canada and Latin America.

Triumph Motorcycles Website - WWW.TRIUMPHMOTORCYCLES.COM
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Sean Alexander
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