Cybex International, Inc., the manufacturer of exercise equipment, said sales for the first quarter of 2009 decreased by 27% to $28.9 million compared to $39.8 million a year ago. The company reported a net loss of $1.4 million, or 8 cents a share, in the period compared to net income for the first quarter of 2008 of $1.3 million or 7 cents a share.
John Aglialoro, CYBEX Chairman and CEO stated, “Q1 sales levels were obviously weak. We believe that a principal cause of the sales decline is customers, particularly fitness clubs and similar facilities, delaying purchases. While this is reflective of economic conditions, generally and in the fitness market, it makes financial projections even more difficult than usual. Margins were negatively affected in Q1 by a variety of factors, including lower volume and the pricing of raw material, especially steel, compared to the same period in 2008. We are projecting steel prices to be lower in Q2, which should help reduce our manufacturing costs. Management has been focused on expense reduction in response to economic conditions. Q1 SG&A was reduced by $1.7 million from the prior year period and our cost structure will continue to be adjusted to sales levels achieved. I am pleased with our new product development and products introduced at the March IHRSA Trade Show, which were well received. The customer enthusiasm for the FT-450 Functional Trainer was particularly gratifying. Although these are difficult times, I remain confident that CYBEX is well positioned for the future.”