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Mavic Sales Decline 14% in 1999

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HERZOGENAURACH, Germany (8 March 2000)–French bicycle component manufacturer Mavic posted a sales decline of 14% last year to FRF288 million (US$42.3mn;EUR43.78mn). The decline does not come as a surprise, as the company’s sales in the third quarter of 1999 were down 25% compared to the same period in 1998. Mavic cited the high cost of […]

HERZOGENAURACH, Germany (8 March 2000)–French bicycle component manufacturer Mavic posted a sales decline of 14% last year to FRF288 million (US$42.3mn;EUR43.78mn). The decline does not come as a surprise, as the company’s sales in the third quarter of 1999 were down 25% compared to the same period in 1998. Mavic cited the high cost of production and the general softness of the bike market as reasons for the loss.
According to a recent article in Sporting Goods Intelligence, most of Mavic’s operations will be integrated into sister company Salomon by the Spring 2001. Mavic’s mother company Adidas-Salomon hopes that the reorganization will help it achieve a 10% operating margin and thus a 10% increase in annual sales.
In mid-February the company announced it was planning to consolidate its production and administrative offices to two central locations. SGI reports that a new central design center is to be built on Salomon’s current site in Metz-Tessy, grouping all design and R&D activities currently spread across three sites. A service center is also planned that will group “the sourcing activities, customer services and the production of complex prototypes and medium-high range hardware products, including some of Mavic’s high-end bike wheel models.” (JW)

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