MONTREAL, Quebec (BRAIN) Friday May 11 2012 10:16 AM MT—Dorel Industries’ bike division posted its best quarter ever in the first three months of 2012 as IBD sales increased in the U.S., Europe and Japan, the company said in an earnings press release issued Friday.
Total first-quarter revenue in the recreational/leisure segment was $220.9 million, up 10.2 percent from $200.4 million during the same quarter last year. At $21.3 million, operating profit was the highest ever in the segment’s history, dating back to 2004.
Cannondale, GT and Mongoose are performing especially well in Europe, the release said.
“CSG Canada also contributed to the sales growth with strong spring shipments to certain key customers. While more modest, sales were also up to the segment's mass merchant customers as favorable weather conditions helped drive consumer demand,” the release said.
There was an operational improvement in the Apparel Footwear Group, which includes Sugoi and apparel divisions for some of Dorel's bike brands. That group has struggled with earnings and profitability, and late last year Dorel outsourced Sugoi’s custom apparel division to help turn it around. In the first quarter, that division was a positive contributor to earnings and its turnaround is on track, the company said.
Dorel pointed to brand building, continued innovation and growing distribution around the globe for success in its bike division.
Dorel’s brands also include Schwinn, Pacific Cycle, Iron Horse and PTI.