Total revenues for the first quarter ended March 31st were up 41.5 percent to $391.8m, compared to $276.9m posted a year ago.
A statement from Dorel said Pacific Cycle had a strong first quarter, and is included in results for approximately two months. The acquisition of Pacific Cycle was concluded on February 4th.
Upon acquisition, guidance was issued for sales of between $335m and $375m for the 11 months of 2004. The results for the first quarter are in line with expectations as sales of Pacific Cycle products for February and March were $52m. Earnings from operations were $6m.
Dorel's statement said: "Bicycle industry sales in the first quarter were slightly stronger than last year. Late in the quarter, Pacific Cycle began shipping major customers the new Schwinn Sting-Ray, a modern day version of the classic Sting-Ray. Response has been very strong, with several large retailers immediately increasing their initial orders. Pacific Cycle is doubling its monthly production in anticipation of the growing demand."
Martin Schwartz, Dorel's president and CEO, said:
"Bicycle sales are expected to strengthen as we move deeper into the spring due to the stronger US economy and better weather relative to last year. The new Sting-Ray is shaping up to be the most exciting new bicycle introduction in over a decade."