STOCKHOLM (BRAIN) — Thule Group's net sales in the company's second quarter were up 9.8%, largely thanks to the addition of Quad Lock revenue to the mix. Thule announced it was buying Quad Lock last November.
The company said its sales grew organically by 1.5%, while the Quad Lock sales added 14.2%. However, unfavorable currency exchange rates decreased revenues by 5.9%.
Total sales for the quarter were SEK 3.4 million ($35 million), up from SEK 3.1 million in the quarter last year. Net income was SEK 512 million, down 8.3% from the quarter last year.
"Market conditions in the second quarter remained challenging, particularly in North America, where consumer behavior was restrained and retailers were cautious about building up inventory levels," said Mattias Ankarberg, Thule's CEO and President.
Ankarberg said a refocus on the North American market was paying off with sales of new products designed especially for the region. "We have launched a number of bike carriers specifically designed for the US market. The result has been very good and makes the difference between the weak sales development in the first quarter and the clearly better trend in the second. Demand was so strong that our Connecticut factory has had to work hard to rapidly increase production capacity. The ability to launch in-demand products in an otherwise weak market shows the strength of Thule’s product development capability," he said.
In its second quarter interim financial report the company said it had "accelerated" the closure of a facility in Longmont, Colorado. It said the acceleration resulted in an extra SEK 31 million in costs. Thule announced in April that it would close the facility by October this year, resulting in the loss of about 22 positions out of a total of about 40 employees there.
