Dorel Industries has posted what it says are a record set of results for its recreational and leisure division in the first quarter of 2010.
As a parent company for Cannondale, GT, Schwinn, Mongoose and IronHorse bicycles, as well as Sugoi apparel, the firm is particularly pleased with the progress its brands have made in the kids’ bikes sector.
Revenue generated in the first quarter increased by 12.5 per cent, jumping to €130.6 million, of which gross profit was €33.2 million. Earnings from operations were €10.9 million.
Dorel CEO and president Martin Schwartz said of the results: “Consumer confidence has risen in many of our markets, including most of Europe. Exciting new product introductions and other marketing initiatives in all of our segments, coupled with our concentration on opening to mid-price points have attracted many to our brands.”
Schwartz also told press that it had added more independent bike dealers to its books in the first quarter of 2010 than in any previously, particularly in the United States.
Going forward, Schwartz acknowledges rising commodity and freight costs could impact on further progress in 2010, but stated: “The momentum established in the first quarter places Dorel in an advantageous position to benefit from our numerous new product introductions and brand equity.”
May also saw the manufacturer open a 70,000 square foot facility to boost its Apparel Footwear Group’s manufacturing capabilities in Metro, Vancouver.