MONTREAL, Canada (BRAIN)—Sales in Dorel’s recreation and leisure segment climbed 11 percent to $861.8 million in 2011, accounting for 36 percent of its overall business.
The recreational and leisure segment includes all of its bicycle brands: Cannondale, GT, Mongoose, Schwinn, Iron Horse, Sugoi, Pacific, Dyno, Roadmaster and PowerLite.
Dorel’s total revenues climbed to $2.364 billion, a 2 percent increase over 2011.
“Dorel's bicycle business had another very strong year, significantly improving on 2010's positive results. We are confident this is sustainable and that the recreational/leisure segment will continue to deliver growth,” said Martin Schwartz, Dorel’s president and chief executive officer, in a press release.
“To help ensure this, we will continue to invest in research and development and promote our brands through new innovative marketing throughout the world, and thus further penetrate our markets,” he added.
Schwartz noted that the company’s bike business was strong in both specialty and mass channels of trade.
“A clear indication of the success of our R&D efforts was the recognition by Tour, a prestigious German bicycle trade magazine, of the Cannondale Super Six Evo Ultimate. It was awarded the top score in a review of ‘The Best Road Bikes in the World over the Past Ten Years,’ ” he added.
The company noted that bike sales during the fourth quarter fell 2 percent, but for the year margins remained at 2010 levels.
For the year, Cycling Sports Group sales were up in all markets, with most of the growth outside North America, which is now more than half of CSG revenue. CSG includes the Cannondale, Schwinn, GT, Sugoi and Mongoose brands.
Sales of Pacific Cycle products, servicing the mass merchant and sporting goods channels, were relatively flat with the prior year.
Still, Dorel said Sugoi's profitability fell by $3 million due to a write down of excess inventory from prior model years and costs of $1.8 million related to the strategic decision to outsource the custom manufacturing business to a third party.