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AXA Bicycle Products Sales Tumble

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AMSTERDAM, The Netherlands (August 27) – Axa Stenman managed to increase its net profit by 20% to € 2.3 million or € 0.74 per share, despite poor sales in all its divisions bike parts and builder’s hardware. Severe cost reductions and redundancies led to this half year 2002 result. Axa’s turnover declined 3.2% to € […]

AMSTERDAM, The Netherlands (August 27) – Axa Stenman managed to increase its net profit by 20% to € 2.3 million or € 0.74 per share, despite poor sales in all its divisions bike parts and builder’s hardware. Severe cost reductions and redundancies led to this half year 2002 result. Axa’s turnover declined 3.2% to € 35.4 million compared with € 36.6 million in the same period last year. Axa turnover for its bicycle accessories division in the first half of this year shrank 4.3% to € 21.5 million. Of these € 10.4 million turnover (-2%) came from the Netherlands and 11 million (-6%) from EU-countries Germany, Belgium and Denmark. Especially German sales of Basta suffered from tough competition in the low-end bike lighting devices. “Lower economic growth and on-going lacking consumer’s confidence from last May were the main reasons”, says to Axa CEO Cees Oosterhoorn.
Aftermarket sales remained at the same level as during the first half year of 2001, but OEM sales fell to a lower level.” Operational results in the bike products line totaled € 1.8 million (2001: € 1.6 million). Axa’s sale of bike parts outside the Netherlands counts for 50% of its turnover. In the Netherlands, market research institute GfK saw bicycle sales tumble by 4% during the first half of this year: Citybikes -5%, hybrid bikes -1% and mountainbikes -24%. Average retail price climbed 6% to € 607. Stocks in OEM sector decreased. To date Axa sold 0.5 million tag locks with a built-in chip, which is registered in a special database. Oosterhoorn forecast, that its net profit for whole 2002 will increase 12-20% net profit per share. (FN)

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