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Derby starts year with slight sales gains

Published February 15, 2012

CLOPPENBURG, Germany (BRAIN) Feb 15, 10:39 MT—Germany’s Derby Cycle started its financial year with a 6.6 percent sales gain during the traditionally weak months for bike sales.

From October to the end of December last year, Derby reported sales of 40.3 million euros ($52.7 million), up from 37.8 million euros ($49.4 million) during the same time period the year before. This represents Derby’s first quarter as it runs on a financial year that ends Sept. 30.

In the first quarter, Derby sold 82,000 bikes, an increase of 1.3 percent.

“Prospects also remain very good for the coming months due to the high pre-order book position at the end of the last financial year, where we registered a 25 percent year-on-year increase,” said Matthias Seidler, CEO of Derby Cycle.

EBIT (Earnings before interest and taxes) was lower due to one-time costs associated with advisory services in connection with Derby’s M & A activities, Accell’s takeover attempts and the eventual buyout by Pon Holdings, said Uwe Bögershausen, Derby’s CFO.

Pon orchestrated a voluntary buyout of Derby last fall after Accell Group, Derby’s Dutch competitor, began buying shares of Derby on the open market. The deal with Pon warded off a hostile Accell takeover. Pon Holdings is also in talks to purchase Cervélo.

Derby owns e-bike brand Kalkhoff, Rixe, Focus (including the Focus USA subsidiary) and Univega and holds the license for Raleigh bikes for much of mainland Europe (but not North America). It is Germany’s largest bike manufacturer in terms of revenue.

Derby will publish its full first quarter report on Feb. 24.

—Nicole Formosa

Topics associated with this article: Earnings/Financial Reports

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