Cybex International Inc. reported Q1 sales climbed 15% to $38.8 million. Cardio equipment increased 13% to $20.2 million, strength equipment grew 18% to $16.1 million, and the other category – primarily freight and parts – was up 8% to $3.5 million. Both North America and international were each up about 15%. Gross margins eroded to 35.6% from 37.2% due to higher freight and warranty costs. Net earnings rose 18.2% to $1.3 million, or 8 cents a share, from $1.1 million, or 6 cents, the prior year.
On a conference call, John Aglialoro, Cybex chairman and CEO, said although the quarter was strong, “the order book fell off the truck in mid-March for the industry. At Cybex, lead times went from about 10 to 12 weeks to more recently two to four weeks. This is not surprising given the recessionary feel of U.S. business in general right now.”
