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Derby Cycle Profit up 5% in 1999

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STAMFORD, CT/USA (27 March 2000)–Last year Derby Cycle Corp. sold 340,000 more units than in 1998. This number includes the 252,000 units sold by Diamond Back. Excluding Diamond Back, total units sold increased 4% in 1999. Year-end sales were boosted particularly by a strong fourth quarter that saw unit sales increased by 158,000 over 1998, […]

STAMFORD, CT/USA (27 March 2000)–Last year Derby Cycle Corp. sold 340,000 more units than in 1998. This number includes the 252,000 units sold by Diamond Back. Excluding Diamond Back, total units sold increased 4% in 1999. Year-end sales were boosted particularly by a strong fourth quarter that saw unit sales increased by 158,000 over 1998, including the 68,000 sold by Diamond Back. Excluding Diamond Back, fourth quarter sales increased by 20%. As expected, Gazelle and Derby Germany in particular posted impressive numbers via the IBD sector. Derby attributes this success to successful product ranges and more effective marketing efforts such as a new television ad campaign in Holland. This led to a combined increase in sales volumes in those markets of 23% for the fourth quarter and 12% for the entire year. Raleigh UK and Probike also saw sales jump by 15% and 33% in the fourth quarter and 6% and 14% for the entire year. In contrast, Raleigh Canada’s sales fell by 15% for the year “as mass merchants started the year over-stocked and experienced weak bicycle retail sales.”
Derby’s net revenues increased by US$25.9 million for the quarter and US$75.1 million for the year to US$132.5 million and US$540.4 million, respectively. Excluding Diamond Back, revenues grew by 11% for the quarter and 5% for the year.

A more detailed report of Derby’s 1999 results will be included in the April issue of Bike Europe.(JW)

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