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MILAN: Italy's Piaggio SpA, best known for its Vespa scooters, said on Wednesday it was targeting further expansion in Asia to offset weak two-wheeler markets in Europe, but left its core earnings margin target unchanged.
In a strategy plan for 2011-2014, Piaggio said it would continue to expand its presence in Asia, with new production, models and sales activities, including entry into the Indian scooter market.
"The plan forsees a strong growth in productivity in order to generate value for customers, workers and shareholders, working on its increased international presence," it said.
Piaggio set 2014 targets of around 2 billion euros in sales, up from just over 1.5 billion euros seen by analysts this year, and an earnings before interest, tax and depreciation (EBITDA) margin of 15 percent.
The EBITDA margin target, which is unchanged from the previous 2013 target set a year ago, is likely to disappoint the market, which had been looking for up to 17 percent.
In the first nine months the EBITDA margin was 14.2 percent. Piaggio shares were up 1.8 percent at 0814 GMT after taking a 4.7 percent tumble on Tuesday. The STOXX Europe 600 auto index
was down 0.9 percent. Piaggio has said it wants Asian sales to account for 50 percent of total sales in 2014, up from a third in 2010, with Europe representing the other half.
Net debt is targeted at around 340 million euros in 2014, slightly lower than at the end of 2011, with an improved net debt/EBITDA ratio of 1.1 times, from 1.7 times.
Source - Piaggio plans Asia boost, cautious on margin - The Economic Times
In a strategy plan for 2011-2014, Piaggio said it would continue to expand its presence in Asia, with new production, models and sales activities, including entry into the Indian scooter market.
"The plan forsees a strong growth in productivity in order to generate value for customers, workers and shareholders, working on its increased international presence," it said.
Piaggio set 2014 targets of around 2 billion euros in sales, up from just over 1.5 billion euros seen by analysts this year, and an earnings before interest, tax and depreciation (EBITDA) margin of 15 percent.
The EBITDA margin target, which is unchanged from the previous 2013 target set a year ago, is likely to disappoint the market, which had been looking for up to 17 percent.
In the first nine months the EBITDA margin was 14.2 percent. Piaggio shares were up 1.8 percent at 0814 GMT after taking a 4.7 percent tumble on Tuesday. The STOXX Europe 600 auto index
was down 0.9 percent. Piaggio has said it wants Asian sales to account for 50 percent of total sales in 2014, up from a third in 2010, with Europe representing the other half.
Net debt is targeted at around 340 million euros in 2014, slightly lower than at the end of 2011, with an improved net debt/EBITDA ratio of 1.1 times, from 1.7 times.
Source - Piaggio plans Asia boost, cautious on margin - The Economic Times
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