November 7/13 12:57 pm - Dorel Releases Third Quarter Report
Posted by Editoress on 11/7/13
Canadian conglomerate Dorel Industries has released its third quarter results. Dorel has a number of cycling subsidiaries, including Cannondale (and the WorldTour team), Sugoi, GT, Mongoose and, most recently, the Brazilian manufacturer Caloi.
In the Recreational/Leisure division, which includes the cycling-related units, Dorel has reported a year-over-year increase in revenue (+1.2%) and operating profit (12.7%) for the third quarter. The first two quarters were down significantly, as was much of the bike industry, due to poor weather in the primary Spring sale season, and subsequent discounting of 2013 models.
Their report included an optimistic outlook:
Despite the global decrease in the bicycle market versus 2012, some market indicators are pointing to stabilization in the bicycle market in the months ahead. Cannondale Sports Group sales rebounded slightly in the quarter due to new model year introductions. Sales at Pacific Cycle were affected by a timing shift that will move some shipments into the fourth quarter. The segment's cost containment program which began during the last quarter is on track.
They also issued a cautionary note: However, the independent bike dealers channel is being cautious on pre-season inventory purchases given their experience with the poor spring 2013 weather.
Third Quarter and Year-to-Date numbers: