Cannondale and Schwinn owner Dorel Industries Inc has unveiled strong results for the second quarter ended 30 June 2010. Total revenue for the period was up 10.3% year on year to reach US$607.7 million. Year-to-date revenue was US$1.2 billion, up 11.9% from US$1.08 billion last year.
Organic revenue growth in both the quarter and year-to-date was approximately 9.5%.
“We are proud of this quarter’s results,” said Dorel President and Chief Executive Officer Martin Schwartz. “Despite negative factors such as foreign exchange, high input costs and increasing ocean freight rates, our divisions performed well and succeeded in building business slowly but steadily.
"We maintained our pace of innovation and accelerated marketing support. Solid top-line results, in conjunction with our cost and productivity efforts, enabled us to deliver meaningful profit improvement year over year.
Schwartz added, “We are seeing the benefits of the on-going investments in our bicycle business through improved product development, solidifying our structure and promoting our brands. Our brands are gaining wider acceptance and our bicycles are more in demand.”
According to the company, Dorel’s Cycling Sports Group (CSG) division saw sales rise ‘considerably over last year with exceptional demand for the division’s elite racing bicycles such as the Cannondale SuperSix.
‘As in the first quarter, demand for new model year products remains strong across all brands resulting in expansion of the dealer base and increases in multi-brand dealers.’
Schwinn performed well, due to the ‘multi-million dollar advertising campaign launched in mid April, excellent retailer support and good early spring weather.’ While increasing selling, general and administration costs, the ad campaign has reportedly been effective in enhancing the Schwinn brand.
Although, according to Dorel, sales to the segment’s mass merchant customers were hindered by a lack of supply due to the global shortage of ocean containers, a situation which is said to be improving.
