Giant & Merida: December Sales Include Bad and Good News

TAICHUNG, Taiwan (February 5) - Good and bad news from Taiwan's number one and two bicycle producers Giant and Merida. According to a recent publication in the Financial Times, both companies that are listed on the Taiwan Stock Exchange experienced a significant sales drop in December 2001. Compared to December 2000, sales at Giant's Taiwan factory dropped 9.6% to a total of TWD 660 million (€19.7mn;US$17.1mn). Sales at Merida's factory in Taiwan plummeted 33% to TWD 348 million (€11.4mn;US$9.9mn). This strong decline is partly caused by transferring production to Merida's plant in China. The good news about Giant's Taiwan sales in December 2001 is that they increased 15.8% compared to November 2001. Furthermore, the sales level in December was the monthly highest Giant Taiwan recorded in 2001. 2001 sales for the whole Giant group with two plants in China, one in the Netherlands and one in Taiwan reached a total of TWD14.16 billion (€465mn;US$405mn). Compared with 2000 Giant's revenues increased slightly with 0.78%. 2001 results at Merida dropped 16.2% compared with 2000 to a total of TWD 3.84 billion (€126mn;US$110mn). Largest negative impact on Merida's business in 2001 was no doubt the bankruptcy of the former Questor bicycle subsidiary that owned Schwinn/GT that was a major Merida customer. According to the Financial Times, the Questor bankruptcy turned Merida's business figures red. Merida also invested heavily in 2001 by acquiring a 49% stake in Specialized. This acquisition is expected to push Merida's sales in 2002. (JB)