Cannondale owner Dorel Industries has released results for the first quarter ended 31 March 2014. Total revenue increased 9% to US$647.7 million from US$594.2 million a year ago. Net income was US$24.8 million, up 11.1%, or US$0.77 per diluted share.
“All three Dorel business segments improved during the first quarter, with the most dramatic gains in our Recreational/Leisure segment,” said Dorel President and CEO, Martin Schwartz. “Sales rebounded at both Cannondale Sports Group (CSG) and Pacific Cycle as the global bicycle market strengthened.
“Coupled with management’s intense restructuring efforts and other cost containment initiatives, operating profit in the segment was up 71% over last year’s first quarter. The recovery in CSG was driven by a strong performance in Europe and the UK due to an early start to spring abroad.”
Accordingly, Dorel has decided to promote Peter Woods from Interim Group President & CEO to Group President & CEO, Recreational/Leisure segment.
Dorel reported that first quarter Recreational/Leisure revenue rebounded strongly as the global bicycle market begins to bounce back. The division saw total revenue of US$240.3 million, up 18.1% year on year. In particular, Cannondale Sports Group (CSG) Europe and UK did very well due to spring’s early arrival abroad and favourable exchange rates.
Organic revenue increased by approximately 8%, after removing the effect of acquisitions and excluding the impact of varying foreign exchange rates. Included in the first quarter is a restructuring charge of US$0.5 million as part of the segment’s overall plan to enhance its competitiveness. It is expected that an additional US$2.6 million will be taken in restructuring charges through 2014.
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