Accell Group profit down 15 percent

Published July 26, 2012

HEERENVEEN, Netherlands (BRAIN) Thursday July 26 2012 7:05 AM MT—Accell Group N.V. saw its profit decline 15 percent in the first half of the year compared with the same period last year, a result company officials are attributing to weather and economic conditions in Europe, especially in the Netherlands.

Accell Group recently acquired Raleigh Cycle and also owns Currie Technologies, Seattle Bike Supply and an array of European bike brands including Atala, Batavus, Ghost, Hercules, Koga, Lapierre and Tunturi.

CEO René Takens said bike purchases declined in several countries in the first half of 2012. "The ongoing uncertainty about economic developments is having a marked impact on consumer spending. Many people are choosing to postpone purchases of expensive goods such as bicycles. In most of the European countries where we are active, the weather conditions were also very much against us in the traditionally important second quarter of the year," he said.

Takens said lower sales in the Netherlands and exchange-rate effects also contributed to the decline in profit. Though he was optimistic about the second half of the year, in part due to "a great number of innovations," he warned that full-year revenue is unlikely to exceed 2011's performance.

The company sold 942,000 bikes in the first half but saw a decline in average price to 352 euros from 410 euros last year. Sales of electric bicycles increased by 15 percent worldwide and by 50 percent in Germany.

With the addition of the Raleigh sales and other acquisitions, revenue rose 19 percent to 446 million euros.

More: company press release.

Topics associated with this article: Earnings/Financial Reports

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