Dorel Industries Recreation/Leisure segment, which owns the Pacific Cycle business and recently acquired the Cannondale and SUGOI brands, reported that sales jumped 60% to $191.7 million for the second quarter. The majority of the increase is due, of course, to the acquisitions. However, sales at mass merchants, which is Pacific Cycle, also increased both in the quarter and year to date. Cannondale was said to have had organic growth of at least 10% so far this year on a conference call with analysts.
Gross margins for the quarter in the group were 23.9% versus 20.6% for the quarter. The higher margins are related primarily to the fact that both SUGOI and Cannondale do sell their products at a higher gross margin. Earnings from operations were up 27% to $17.7 million. Earnings from operations, as a percentage of sales, decreased to 9.1% from 11.6% last year.
