Dorel Industries Inc. has released results for the second quarter ended June 30, 2005.
The company's recreational/leisure division - which includes Pacific Cycle - reported a revenue increase of 7 percent to $110.2m compared to last year's $103m. For the six months, revenue was up 22.5 percent to $193m from $157.5m in 2004. Of this increase, sales in January 2005 were $12.3m. As the Pacific Cycle acquisition became effective in February 2004, this additional month of revenue in 2005 results in organic year-to-date sales growth of 14.7 percent, said Dorel.
"Despite increased year- to-date sales within the majority of [our] product categories, revenues in the recreational/leisure segment are expected to be lower in the second half of 2005 versus 2004. Retail sales of the Sting-Ray model bicycle continue to be above average as compared to other bicycle categories and remain a key part of the Schwinn portfolio. However, second half sales of the Sting-Ray will be lower than the unprecedented record levels achieved in the second half of 2004, resulting in lower second half earnings than in the prior year."