Bell Sports Profiting From
Summary: A 1996 article about Bells profits after acquiring Giro.
An article from
and Industry News
May 15, 1996
(used with their permission)
SCOTTSDALE, AZ Recent strategic moves, including the acquisition
of Giro Sport Design and SportRack, a Canadian roof rack manufacturer,
have apparently paid off for Bell Sports.
The company's profits totaled $624,000 in its third quarter, which
ended Mar. 30.
During the same quarter last year, Bell lost $231,000. This year
the company posted net sales of $67.4 million in the quarter,
up 8 percent from last year.
"Fiscal 1996 has been a year of transition and foundation
building. The strategic actions have begun to produce the desired
results-profitability," said Terry Lee, Bell's chairman and
chief executive officer.
In the last 12 months, Bell has merged with American Recreation,
introduced the Bell helmet brand into the mass market, bought
Giro and SportRack, embarked on an aggressive advertising campaign
that includes television spots, and began consolidating its U.S.
operations in Northern California.
Bell also restructured its Canadian operations, ending its 12year
relationship with Norco, a Canadian distributor.
Bell products, including those sold under the Bell, Blackburn,
Rhode Gear and VistaLite brands, will be distributed by CycleTech
starting Aug. 1.
Norco will continue to sell and service Bell products until July
31. CycleTech recently moved its corporate office from Calgary
to Bell's new Canadian headquarters in Granby, Quebec.
American Recreation bought CycleTech in 1994. When Bell merged
with American Recreation last year, Canadians said it was only
a matter of time before Bell pulled its products from Norco and
gave them to CycleTech.