Cannondale owner Dorel Industries Inc has released its Q3 2012 results. Total company revenue for the quarter rose 6.5% year on year to US$613.3 million. Dorel President and CEO Martin Schwartz said “Our core businesses are moving in the right direction despite a difficult economy.”
As previously noted by the company, Dorel’s overall performance was again supported by the activities of its bike business, which sits within Dorel’s Recreational/Leisure segment.
Recreational/Leisure
Here, Q3 2012 sales increased 9.1% year on year – driven primarily by shipments to the mass market channel. For the year-to-date, Dorel noted that both the IBD and mass market channels increased sales.
Excluding the impact of foreign exchange variations on the Recreational/Leisure segment’s non-US based businesses, the segment’s organic revenue increase was approximately 11% for the quarter and 8% in the year-to-date.
Operating profit for the Recreational/Leisure segment improved by US$2.5 million, or 25%, to US$12.5 million. For the nine months, operating profit was up 13.1% to US$55.5 million.
Contributing to the improvement in operating profit was the on-going turnaround at the SUGOI apparel business. Last year the apparel division lost US$2.2 million during the third quarter; whereas the changes implemented thus far in 2012 have ‘resulted in a breakeven situation during the most recent quarter.’
Dorel notes that it was front and centre at the year’s two most important bike shows, held in Europe [Eurobike] and in the US [Interbike]. Several new Cannondale models were launched for 2013 and Cannondale was the recipient of three Eurobike 2012 awards.
Dorel’s Cycling Sports Group (CSG) also used the US Interbike show to announce the launch of the new GURU Experience, an advanced personalized bike fitting and consultative retail system. According to Dorel, ‘this will help consumers reach their peak performance and will further position CSG as the go-to bike company.’
