Accell Group said its acquisition of Raleigh last spring, which substantially increased its presence in North America, will result in higher sales, but lower profits in the back half of the year as financing and integration charges and rising input costs land on its income statement.


CEO Rene Takens said the company saw growth in most countries where it operates, including its native market of the Netherlands, thanks to more favorable summer weather than a year earlier.


Noting that current economic conditions make it difficult to project results, Takens said Accell expects net operating profit (net profit excluding exceptional items) in the second half to come in lower than last year’s €4.4 million because its company’s won’t be able to fully pass on rising costs and because of limited contributions and higher financing costs from acquisitions.


He added that the integration of Raleigh and Diamondback, which were acquired in April, is “at full speed.” Both companies, for instance, have recently retained the same U.S. public relations agency. He added that higher priced electric bikes and innovative sports bikes – including mountain bikes using RockShox new electronically controlled E:I rear shock system – but that sales of traditional bikes are under pressure.


Accell Group is the largest provider of bicycles in Europe, which slipped into recession in the third quarter. The Dutch company’s best known brands are Atala, Batavus, Diamondback, Ghost, Haibike, Hercules, Koga, Lapierre, Loekie, Raleigh, Redline, Sparta, Tunturi, Winora and XLC.