Derby Files Detailed 2000 Results

Derby Files Detailed 2000 Results WASHINGTON DC/USA (April 18) – The Derby Cycle Corporation managed to increase its bicycle deliveries last year by 0.5% to slightly less than 2.4 million units. The global operating bicycle manufacturer group saw its sales volume increase in all markets other than the USA and the UK. However, the sales increase did not improve Derby’s results which accounted for a loss of US$ 5.2 mn in 1999. As a matter of fact the loss increased by no less than 903% to US$ 51.3 mn in 2000. The Derby Cycle Corporation recently filed its detailed year 2000 Annual Results to the US Securities and Exchange Commission. In the trade journal Bike Europe as well as on this website, we reported earlier in extenso about the poor results of one of the world’s biggest bicycle manufacturing groups. Nevertheless, the annual report presents a more clear picture on what is going on at the several affiliated companies like Raleigh UK, Derby Germany and Gazelle in Holland. With regard to Raleigh UK, the number of units sold dropped in 2000 by 18.9% to 407,000 units (was 502,000 in 1999). Net revenues of Raleigh UK dropped by 12.4% to US$ 67.1 mn. Derby’s number one moneymaker, Gazelle in the Netherlands reported a 13% sales increase to a total of 382,000 bicycles. Net revenues of the market leader in Holland showed an even bigger increase with 21.2% to a total of US$ 130.8 mn. Derby Germany saw its sales increase with 9.5% to a total of 640,000 units. Next to Gazelle, Derby Germany also managed to increase its net revenues in a bigger way compared to the up in sales. Net revenues showed a 20.9% growth to US$153.7 mn. Sales at Derby USA dropped with 14.7% to 439,000 units while its net revenues decreased with 9.3% to a total of US$109.8 mn. The total number of bicycles sold by the Derby Cycle Corporation in 2000 (including Raleigh Canada, Probike and other companies) amounted 2,338,000 units compared to 2,375,000 units in 1999. Net revenues amounted US$ 526.7 mn, up 8.2% compared to 1999. Next to the huge increase of the net loss of the company to US$ 51.3 mn, it is also striking that the working capital of the Derby Cycle Corporation decreased with more than 40% in 2000 to US$ 52.7 mn. (JO)