[ENP83]

Triumph claiming losses of around a million dollars for the year?

Wednesday, January 5, 2005
Triumph Struggling?

Since the debuts of Triumph’s Thruxton and Rocket III, the worldwide motorcycle press has continually praised the manufacturer for bold moves to win increased market share. Recently, Triumph followed on the sales success of these bikes with the rollout of significant upgrades to four of its core bikes: the Daytona, Sprint ST, Tiger and Speed Triple during this year’s Intermot show. Reviews of the increased displacement Daytona 650 are just now appearing and word is that the bike is a keeper as it provides more comfort and equivalent performance to its Japanese supersport counterparts.

However, a recent story in the UK newspaper, the Telegraph reports that Triumph is claiming losses of around a million dollars for the year and has reduced staff by 12 percent. This news follows company press releases touting increased sales in the US for every quarter of the past year and significant buzz in the marketplace. Triumph is still recovering from the 2002 fire at its Hinckley plant and obviously has incurred some significant product development and manufacturing costs related to the new models introduced and advertising spending within the US has definitely been up over the year as they have been running full page ads in almost every motorcycle magazine I have read this year.

As a current Triumph owner who can’t wait to get a test ride on the new Sprint ST and Daytona 650, here’s hoping that this year’s results are mainly symptomatic of the falling dollar and considerable investment. With any luck John Bloor and co. have implemented the correct cost controls to guarantee that brit-bike enthusiasts will always be able ride a Triumph. Rest assured that we’ll keep you posted throughout the year on this story. Of particular importance will be Q1 and Q2 results to see if the model upgrades are bringing new buyers in and whether or not Rocket III sales continue to grow beyond the huge demand exhibited when the bike was first released.

link to Telegraph report

 

[KeithU]

I wouldn't be too worried about it. They've done a buttload of R&D over the last year or two, and offsetting some of the USA sales boom is a continuing slump in European sales. Plus, as you said, the slumping dollar probably doesn't help. Companies frequently post annual losses and it's not the end of the world.

 

[skohlscheen]

From day one Triumph has never posted a gain. There is rumor that it will never post a gain as it's a privately held company by one man, John Bloor. If it posted a gain, it, and consequently John, would be taxed substantially.

 

[ENP83]

Who knows, I just hope they succeed :waytogo:

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

 

[DyMag996]

Latest news on the subject, I saw it on roadracingworld.com

TRIUMPH MOTORCYCLES (AMERICA) LTD. SETS NEW SALES RECORD

US New Units Sales top 7,500 for 2004

NEWNAN, Georgia - January 18, 2005 - Triumph Motorcycles (America) Ltd., announced today that new retail sales topped 7,500 units for the 2004 calendar year. Triumph retailed 7,533 motorcycles in 2004, an increase of 35% over 2003, which makes Triumph the fastest growing production motorcycle company in America for 2004. In December, Triumph retailed 341 units, a 47% increase over the prior year, and the 10th record breaking month of 2004.

Triumph's success in 2004 stemmed in part from interest generated by the introduction of 2 distinctive new models; the Thruxton 900 café-racer inspired variant of the venerable Bonneville, and the awe-inspiring Rocket III 2,300cc Power Cruiser. These exciting new bikes reintroduced thousands of consumers to the Triumph brand, which led to sales increases across the model line.

Triumph looks forward to another record-breaking year in 2005. This will be the first full-season for the Rocket III, and all-new versions the innovative Speed Triple Street Fighter and Sprint ST sport tourer featuring Triumph's new 1050cc three cylinder engine will arrive in dealer's showrooms in March.

 

[ENP83]

Ah ya beat me to it, I just read the exact same text on motorcycle.com. Glad to see Triumph's sales are up and theres no real cause for alarm. BTW, the Triumph forum has been dead lately and wheres Zerne? Haven't seen a post from him in a while...