Cannondale Had Another Loss-suffering Quarter

BETHEL/CN, USA (November 11) - Cannondale Corp. saw its net loss further widen to US$8.4 million or $1.11 per share in its first quarter 2003, which ended on September 28, 2002. One year earlier the US-bicycle and Powered Two-Wheeler (PTW) maker had US$4.1 million net loss. Operational loss doubled to US$6.8 million compared with US$3.1 million one year ago. However, net sales grew to US$37.3 million compared with US$34.1 million during the same period last year. Bicycle net sales decreased to US$31.6 million during its first quarter of 2003, compared with US$33 million one year earlier. Motorsport net sales grew to US$5.7 million from US$1.1 million last year. Cannondale's pretax income of the bicycle division totaled US$628,000 compared with nearly US$3 million one year earlier, while Motorsport net loss further widened to US$7.4 million from US$7.2 million one year earlier, excluding a US$1.8 million one-time provision. Cannondale blamed these loss-making figures partly to some of its overseas suppliers, which were not able to deliver in time. But also lowered bicycle margins to 30.9% during the past quarter from 33.5% one year ago, due to lower foreign sales were blamed by the US-bike maker. Despite these figures Cannondale gave a promising forecast, as its 2003 bicycle collection was well received in Europe and some of its motorcycles and ATVs were declared street legal in Spain, Portugal and Germany. (FN)