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Weather cools Derby's full year outlook

Published August 23, 2012

CLOPPENBURG, Germany (BRAIN)—Derby Cycle tempered its full-year revenue forecast on Thursday due to a weaker than expected spring selling season caused by poor weather in much of Northern Europe.

Derby said full-year earnings would likely fall on the low end of the 250 million and 270 million euros range it had previously forecast. Operating profit is expected to come in at 7 to 8 percent instead of 8 to 9 percent, according to a press release issued by Germany’s largest bicycle manufacturer.

“Since April, the entire bicycle sector has had to struggle constantly with a rainy spring and temperatures that were too low,” said Mathias Seidler, Derby’s CEO. “Despite a corresponding downtrend in sales among specialist dealers, we report further year-on-year growth in both revenues and operating earnings.”

Revenue for the first nine months of Derby’s fiscal year ending June 30, rose 10.5 percent to 219.8 million euros, up from 198.8 million euros for the same time period last year.

Sales met target growth in Derby’s home market in Germany and internationally. The company sold 4.4 percent fewer bicycles through the end of June than the previous year, but the number of electric bikes sold increased by 21.8 percent. Derby sold 395,000 units, of which 89,000 were e-bikes. Operating profit was up 9.4 percent to 20.9 million euros in the first nine months of the year.

Derby will publish its first full nine-month report on Aug. 31 on its website, www.derby-cycle.de. Derby owns Focus, Kalkhoff, Univega, Rixe and develops and sells Raleigh in Europe’s German speaking countries. It is owned by the Dutch group Pon Holdings.

Topics associated with this article: Earnings/Financial Reports

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