This situation is now being further compounded by widespread
discounting by competitors in the bicycle industry. As a result of the
soft first half, full year earnings in bicycles will not, as previously
indicated, exceed 2012 levels. Performance of the company's two other
segments, Juvenile and Home Furnishings remain on track as outlined in
the press release of May 9, 2013.
Dorel has initiated significant cost reductions across the Recreational/Leisure segment. This includes a headcount reduction of some 50 positions worldwide, roughly 5 percent of the segment's workforce. As a result, Dorel will record a second quarter one-time charge of approximately US$ 2 million for severance.
"These issues in bicycles are mainly related to matters beyond our control," stated Dorel President and CEO, Martin Schwartz. "Our bicycle products are proven and our brands remain very strong. Cannondale continues to attract both excitement and highly positive comments. The reality is that we are now into mid-June and the weather has not improved sufficiently which means that we will be unable to make up the accumulated year-to-date sales shortfall. With the cost reductions being implemented, we are optimistic that bicycle earnings in the second half will increase double digit over last year."
Dorel will announce second quarter results on Aug. 9, 2013.
Dorel has initiated significant cost reductions across the Recreational/Leisure segment. This includes a headcount reduction of some 50 positions worldwide, roughly 5 percent of the segment's workforce. As a result, Dorel will record a second quarter one-time charge of approximately US$ 2 million for severance.
"These issues in bicycles are mainly related to matters beyond our control," stated Dorel President and CEO, Martin Schwartz. "Our bicycle products are proven and our brands remain very strong. Cannondale continues to attract both excitement and highly positive comments. The reality is that we are now into mid-June and the weather has not improved sufficiently which means that we will be unable to make up the accumulated year-to-date sales shortfall. With the cost reductions being implemented, we are optimistic that bicycle earnings in the second half will increase double digit over last year."
Dorel will announce second quarter results on Aug. 9, 2013.
Dorel's Recreational/Leisure segment owns the Cannondale, Schwinn, GT, Mongoose, IronHorse and Sugoi brands.
Related Links: Source Dorel Industries through SportsOneSource
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