PIERER Mobility Revises 2024 Guidance

In the current financial year, PIERER Mobility AG has observed a significant slowdown in its core motorcycle markets in the USA and Europe. The latest interest rate decisions in the USA are expected to keep rates high, negatively impacting U.S. sales. European sales remain volatile. Consequently, sales figures are anticipated to miss expectations after three years of above-average performance.

Dealers are expected to reduce inventories, tying up capital, while extended payment terms and higher discounts will adversely affect EBIT and the financial results this year. The bicycle market, overheated during the pandemic, faces similar issues. Inventory levels remain high, exerting pressure on sales prices, leading to a significantly negative result in the Bicycles segment.

The Executive Board forecasts a sales decline of 10% to 15% for both motorcycles and bicycles in 2024. In motorcycles, cost savings may offset sales declines, potentially achieving a balanced to slightly positive EBIT. However, the Bicycle division anticipates a significantly negative EBIT between € -110 to € -130 million due to extraordinary impairment and restructuring requirements.