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Huffy Posts US$33 Million Loss for 1999

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DAYTON, OH/USA (15 February 2000)–Huffy Corporation, seller of the Huffy mass-market brand of bikes, suffered a net loss of US$33.3 million for the year ending 31 December 1999. The net loss includes a pre-tax charge of US$38.6 million (US$25.2 million after tax) related to plant closures and the reconfiguration of the Huffy Bicycle Company. The […]

DAYTON, OH/USA (15 February 2000)–Huffy Corporation, seller of the Huffy
mass-market brand of bikes, suffered a net loss of US$33.3 million for the
year ending 31 December 1999. The net loss includes a pre-tax charge of
US$38.6 million (US$25.2 million after tax) related to plant closures and
the reconfiguration of the Huffy Bicycle Company.
The net loss from continued operations for 1999 was US$39.2 million,
compared to a net loss of US$2.1 million for the same period in 1998.
The company reported net sales for the full year 1999 of US$561 million,
compared to US$584.2 million in 1998, a decrease of 4%.
Don R. Graber, chairman of the board, blamed a “severe decline” in
bicycle prices, aggressive competition from low-cost bikes, mainly from
China, and “unprecedented pressure” on operating margins as contributing
factors to Huffy’s decision to cease US manufacturing.
“The transformation, which will allow the Huffy Bicycle business to
continue to provide consumers with high-quality, cost competitive products,
was essentially complete as of year-end 1999,” Graber said.
The sales and earnings of Huffy’s other business units were all up. Graber
was optimistic about Huffy’s future potential now that the restructuring of
the bicycle side of the business was over. (WJ)

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