Pierer Mobility expects a ten to fifteen p.c drop in gross sales for bikes and bicycles this 12 months, in addition to a drop in income: Within the bike sector, the price financial savings launched ought to take impact and compensate for the declining gross sales, the corporate introduced in a press launch. Right here, the corporate is aiming for a balanced to barely constructive working end result (EBIT). Within the bicycle sector, nonetheless, a lack of 110 to 130 million euros is to be anticipated.
Variety of workers shrinking
With the expansion in gross sales figures during the last ten years, the variety of workers on the bike subsidiary KTM AG has greater than doubled, the corporate writes. “In view of the modified location and market state of affairs, the variety of workers now needed to be adjusted. This discount in personnel following years of accelerating employment is painful, however crucial in an effort to keep and safe the competitiveness of the manufacturing website.” What this implies in concrete phrases and whether or not extra workers should go mightn’t be decided over the weekend.
The detrimental EBIT within the bicycle division was primarily attributable to extraordinary write-downs and restructuring. The corporate pointed to the excessive demand for bicycles in the course of the Corona pandemic. This led to a rise in inventories at Pierer Mobility, but in addition at suppliers and sellers. These inventories nonetheless should be lowered, with gross sales costs coming beneath strain.
Within the bike sector, the dynamics within the core markets of the USA and Europe have slowed down significantly. The corporate additionally introduced that rates of interest within the USA will proceed to be excessive. This might have a detrimental influence on US gross sales. However the European market can also be proving to be very unstable.
Amount restricted in Mattighofen
Because the manufacturing prices of bikes in Europe have elevated, the variety of models produced on the Mattighofen website is to be considerably lowered. As well as, joint analysis and improvement will likely be expanded with associate Bajaj Auto in India and the three way partnership associate CFMOTO in China. There are additionally plans to make use of “the advantageous financial situations in these areas to make sure competitiveness” and to position larger emphasis on the native provider trade.
To keep away from any misunderstandings: KTM Fahrrad GmbH with the KTM bicycle model has nothing to do with this. This firm has been an impartial household enterprise for 30 years – and is the only real property of Carol Urkauf-Chen.
Manufacturers from the Pierer empire embody Husqvarna, Raymon and Gasgas.
