Scooter slump hurts Huffy
Dayton Business Journal - by Dennis Hoerig DBJ Web Editor
Miamisburg-based Huffy Corp. today showed a loss for the third quarter, reversing the profit the bicycle and scooter manufacturer reported in the same period last year.
Huffy's net loss was $2.8 million, or 27 cents per share. During last year's third quarter, the company showed profit of $5.2 million, or 50 cents per share.
Net sales were down significantly, from $123.9 million for the same period last year to $77.9 million this quarter.
The drop, according to Huffy President and Chief Executive Officer Don Graber, is owed to a serious slump in scooter sales. Last year, the company sold $44 million in scooters during the third quarter. This year, very few were sold during the period. Scooters, Graber said, account for 95 percent of the difference in sales, year over year.
In contrast, basketball backboard sales rose 25 percent during the third quarter. Graber credited cost controls and the pursuit of new business opportunities in that sector for the showing.
Following today's results, the company also is warning on fourth quarter financials and foresees fiscal year 2001 as "possibly leading to a modest loss." It previously had the fiscal year pegged at break-even to profit of 12 cents per share.
"Given the current economic climate, we have raised our internal target for cost reductions and are aggressively pursuing additional savings in both the cost-of-product and administrative areas," Graber said.
In addition, the company will continue to work with financial advisors Sheffield Merchant Banking Group on potential "acquisition alternatives."
Last month, Huffy withdrew its bid to buy bankrupt bicycle company Schwinn/GT in federal court. The expenses associated with that bid, which exceeded the $800,000 breakup fee Huffy received, also contributed to the company's third quarter loss.
Huffy, http://www.huffy.com, was trading down 3 cents this afternoon on the New York Stock Exchange, at $6.17 per share. The company's 52-week range is $6.01 per share to $12 per share.
Latest News |
Most Viewed Stories |
Most Emailed Stories |
