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Accell Group Predicts Jump in Profit

Published November 19, 2008

HEERENVEEN, the Netherlands (BRAIN)—Accell Group raised its projected 2008 profit from an expected 10-percent increase over 2007 to a 15 percent jump based on the company’s performance so far this year.

Sales of high-end bikes and electric bikes showed sound development in the third quarter of 2008, according to a press release issued Wednesday by Accell Group.

“Cycling remains popular in economically adverse times, partly due to the increasing attention for health and mobility,” said René Takens, chief executive officer of Accell Group. “Last summer’s increase in fuel prices caused a lot of consumers to think about alternative means of transportation. This led to a more frequent use of the bicycle. In addition, we are benefiting from an aging population in Western Europe, which is an important target group for sales of, among others, electrical bicycles.”

Takens continued: “Both governments and consumers show increasing interest in sustainability and CO2 reduction. The bicycle provides a seamless match for this. The new collections we presented in September were well received by the dealers and the order intake for the 2008-2009 bicycle season is currently at a higher level than last year.”

Accell Group owns a host of brands including Batavus, Bremshey, Ghost, Hai, Lapierre, Mercier, Redline and Sparta that sell particularly well in the Netherlands and Germany.

The company’s solid 2008 results allow it to continue to invest in innovation and design, both in new models and in parts and accessories, the release said. The brand and marketing strategy of Accell Group will remain focused on supplying high-quality bicycles and fitness products that appeal to the consumer.

Topics associated with this article: Earnings/Financial Reports

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