Derby Cycle Profit up 5% in 1999

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)