MONTREAL (BRAIN) — Dorel reported 0.6 percent growth in fourth-quarter revenue at its bike division, which includes Cannondale, Sugoi, GT, Schwinn, Mongoose and Caloi. However, full-year revenue declined 7.8 percent.
Organic revenue, which excludes the positive impact of foreign exchange rates, was off 1.4 percent for the quarter and 11 percent for the year.
Dorel said the segment’s revenue improved from the third quarter despite the continuing challenging global bicycle market, particularly in North America. Sales at Cycling Sports Group, which includes its specialty bike brands, decreased due to the competitive environment and a generally soft industry globally at independent bicycle dealers, the company said.
Fourth quarter operating profit increased $4.6 million to $9.6 million. Excluding restructuring and other costs, adjusted operating profit declined by $0.9 million to $9.3 million. For the year, operating profit was $24.8 million compared to an operating loss a year ago of $33.9 million.
The company said it expects to deliver higher sales and better operating profit for its bike business in 2018.
“This improvement is expected in all three of our principal channels: mass market, independent bike dealers and sporting goods. While there …read more