- Joined
- Feb 3, 2012
- Messages
- 48
- Location
- Sudbury, MA
tstephenson, net income is not reflective of total debt. It seems that you are asserting that since Ducati showed net income it means the company does not have any debt. Without schooling on Finance and Accounting 101, suffice it to say that it has been well publicized (and yes, the data is accurate, although varying), that Ducati has SUBSTANTIAL debt, far exceeding the net income figure stated above.
All of this may matter little, most companies float large debt loads, especially now, after the recession. Also, sales of units, although increased in 2011, were not substantial enough (not even close) to allow InvestIndustrial to realize a return on capital investment. (although Ducati is private, their owners' financials are available unconsolidated). [Not to mention we're in the M&A business and track such things]. In short, strong sales do not always equal strong bottom line profits; many factors exist, and in Ducati's case they have front-end-loaded millions of dollars worth of product development which has still yet to be recouped. Bottom line is and I think we all agree, Ducati is a great motorcycle company. While their current holders don't want to put in more cash, a company with deeper pockets and vision for the growth of the brand may. The 1199 Panigale would be my 6th Ducati so I hope they find a suitable buyer. I do agree with others that Ducati scores poorly with regard to dealer and customer feedback, but the company's owners aren't concerned about delivering Panigales (since they won't be around long enough to realize any sales or profits therefrom), they are concentrating on selling. As an aside, BMW and AMG never had any intention of buying, and HERO was only cursorily interested. No one would buy for the price that was being sought and VW lowered its bid hundreds of millions, as expected.
