Cannondale Struggles Amidst Layoffs, Dwindling Cash

Discussion in 'Mountain Bikes' started by Spademan O----L, Jan 23, 2003.

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  1. Copied from alt.bmx, courtesy of Geneb.

    BTW Notice how folks in alt.bmx are interested all aspects of cycling and don't come out with some
    maginalised crap about take it to etc etc. (actually, no-ones really interested, but at least its
    tolerated!)

    Geneb wrote in message <[email protected]>...
    >*** Cannondale Struggles Amidst Layoffs, Dwindling Cash ***
    >
    >BETHEL, CT. -- 12/13/2002 With Christmas around the corner, Cannondale furloughed most of its
    >manufacturing staff--upwards of 600 people --at its two Bedford, Pennsylvania, factories this week.
    >
    >Continued losses in the company's motorsports division, fueling an on-going cash crunch, are in
    >part to blame for the widespread layoffs. The plants normally employ about 650 people.
    >
    >Tom Armstrong, a Cannondale spokesman, said the company has traditionally cut back its factory
    >operations during December and January, reflecting low consumer demand during the winter months.
    >"It's something we've always done," he said.
    >
    >However, last year half the employees worked three days one week then two days the next. The other
    >half would then work three days on with two off.
    >
    >This winter, except for a skeleton crew, most employees will be idle through at least mid-January.
    >Cannondale builds motorcycles and bicycles in its two Bedford factories.
    >
    >The short-term layoffs sparked a surge Wednesday in trading volume. Some 231,910 shares changed
    >hands yesterday, far above its daily average of 13,400. Cannondale's stock price fluctuated from
    >the day's opening bid of $1.03, dipping to 97 cents, and then closing up at $1.11 --an 11 percent
    >gain on a modest $1. Its 52-week high back in March was $4.60.
    >
    >Cash is hard to find at Cannondale. A number of companies in the industry are stuck with long
    >overdue bills with no indication from Cannondale when they will be paid. And few companies are
    >shipping Cannondale products without being paid first, or they are offering only a limited line
    >of credit.
    >
    >And financial losses are mounting. Cannondale ended its fiscal year last June, posting a
    >$15.4 million loss. In the first three months of its 2003 fiscal year (July through
    >September), the company reported a net loss of $8.4 million--a rate almost three times faster
    >than all of last year.
    >
    >Blame it on the motorsports division. The company's decision to enter the motorsports business
    >meant tackling the likes of Harley Davidson, Honda, Suzuki, Yamaha and others.
    >
    >Last year, the bicycle division generated more than $134 million in sales, compared to $22 million
    >from motorcycles and ATVs. Yet every motorcycle and ATV sold in 2002 was sold at a loss, according
    >to Cannondale's annual report.
    >
    >Cannondale's decision to move into motorsports has caused resentment among some long-time employees
    >as the division has drained millions from the company's coffers and sucked resources from its
    >bicycle division.
    >
    >Robin Hartfiel, editor and publisher of DealerNews, a motorcycle trade magazine, said he sees no
    >dramatic turnaround ahead for the company's motorcycle sales.
    >
    >"They are yesterday's news on the motorcycle front," Hartfiel said, adding that the company
    >apparently can no longer afford to advertise them.
    >
    >Hartfiel said the motorcycles received reams of hype from consumer magazines before they were
    >delivered. And when they were delivered--late--the first batch had to be recalled.
    >
    >"It's not a bad bike, but it's not a world beater either," he said.
    >
    >If there's a bright spot, it's Cannondale's high-end competition ATV, which sells for more than
    >$12,000. Dealers can sell them if they can get them. But again, parts suppliers are refusing to
    >deliver unless they
    >
    >get paid, complicating assembly and ultimately delivery to dealers.
    >
    >Cannondale also is using its ATVs to leverage its motorcycle sales, spawning some dealer
    >resentment. For example, dealers are being asked to take upwards of four motorcycles before getting
    >one ATV, and few dealers who listen to their customers want to stock Cannondale motorcycles,
    >Hartfiel said.
    >
    >Geneb...Wenatchee,Washington-USA All Things Northwest in BMX! ***** Gene`s BMX *****
    >http://www.genesbmx.com
    >
    >

    Steve E.
     
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  2. Sorni

    Sorni Guest

    "spademan o---[)*" <[email protected]> wrote in message
    news:[email protected]...
    > Copied from alt.bmx, courtesy of Geneb.
    >
    > BTW Notice how folks in alt.bmx are interested all aspects of cycling and don't come out with some
    > maginalised crap about take it to etc etc.

    Take it to alt.whiners-badinvestments.

    Bill "uh, MAGINALISED???" S.
     
  3. Mudhead

    Mudhead Guest

    On Fri, 13 Dec 2002 10:34:57 -0000, "spademan o---[)*" <[email protected]> wrote:

    >Copied from alt.bmx, courtesy of Geneb.
    >
    >BTW Notice how folks in alt.bmx are interested all aspects of cycling and don't come out with some
    >maginalised crap about take it to etc etc. (actually, no-ones really interested, but at least its
    >tolerated!)
    >
    >
    >Geneb wrote in message <[email protected]>...
    >>*** Cannondale Struggles Amidst Layoffs, Dwindling Cash ***
    >>

    <SNIP>

    Funny thing about being "Dwindling Cash". The LBS I deal with wanted to add C-Dale to their line of
    bikes they sold. Well guess the additional sales weren't needed for C-Dale. A a result my LBS will
    not become a C-Dale dealership. This shop even wanted to sweeten the deal via its parent company
    with a motorcycle order for another division of theirs.

    Mudhead
     
  4. Shaun Rimmer

    Shaun Rimmer Guest

    Sorni <[email protected]> wrote in message
    news:[email protected]...
    >
    > "spademan o---[)*" <[email protected]> wrote in message
    > news:[email protected]...
    > > Copied from alt.bmx, courtesy of Geneb.
    > >
    > > BTW Notice how folks in alt.bmx are interested all aspects of cycling
    and
    > > don't come out with some maginalised crap about take it to etc etc.
    >
    > Take it to alt.whiners-badinvestments.
    >
    > Bill "uh, MAGINALISED???" S.

    Hey, diggerboy - you gone and landeds yerself a live one!

    Shaun aRe
     
  5. Michael Paul

    Michael Paul Guest

    "Sorni" <[email protected]> wrote in message
    news:[email protected]...
    >
    > "spademan o---[)*" <[email protected]> wrote in message
    > news:[email protected]...
    > > Copied from alt.bmx, courtesy of Geneb.
    > >
    > > BTW Notice how folks in alt.bmx are interested all aspects of cycling
    and
    > > don't come out with some maginalised crap about take it to etc etc.
    >
    > Take it to alt.whiners-badinvestments.
    >

    can't be any worse than that Peregrine Toilet Paper you own can it? :)

    > Bill "uh, MAGINALISED???" S.
     
  6. Sorni

    Sorni Guest

    "Michael Paul" <[email protected]> wrote in message
    news:TnpK9.128577$%[email protected]...
    >
    > "Sorni" <[email protected]> wrote in message
    > news:[email protected]...
    > >
    > > "spademan o---[)*" <[email protected]> wrote in message
    > > news:[email protected]...
    > > > Copied from alt.bmx, courtesy of Geneb.
    > > >
    > > > BTW Notice how folks in alt.bmx are interested all aspects of cycling
    > and
    > > > don't come out with some maginalised crap about take it to etc etc.
    > >
    > > Take it to alt.whiners-badinvestments.
    > >
    >
    > can't be any worse than that Peregrine Toilet Paper you own can it? :)

    What's sad is that that isn't my worst mistake!

    Bill "Leap Wireless de-listed, too" S.

    PS: But(t) at least toilet paper doesn't break like Crack 'n Fail
     
  7. Gee they develop whole motorcycles from the ground up for race series no one has ever hear of and
    you say they are hard up for money??? Maybe they are hoping Mototard will replace grand prix racing
    in the near future, heck they thought the lefty was a good idea.
    --
    _________________________
    Chris Phillipo - Cape Breton, Nova Scotia http://www.ramsays-online.com
     
  8. Michael Paul

    Michael Paul Guest

    "Sorni" <[email protected]> wrote in message
    news:[email protected]...
    > "Michael Paul" <[email protected]> wrote in message
    > news:TnpK9.128577$%[email protected]...
    > >
    > > "Sorni" <[email protected]> wrote in message
    > > news:[email protected]...
    > > >
    > > > "spademan o---[)*" <[email protected]> wrote in
    message
    > > > news:[email protected]...
    > > > > Copied from alt.bmx, courtesy of Geneb.
    > > > >
    > > > > BTW Notice how folks in alt.bmx are interested all aspects of
    cycling
    > > and
    > > > > don't come out with some maginalised crap about take it to etc etc.
    > > >
    > > > Take it to alt.whiners-badinvestments.
    > > >
    > >
    > > can't be any worse than that Peregrine Toilet Paper you own can it? :)
    >
    > What's sad is that that isn't my worst mistake!

    Crap! I didn't even know you had the great financial mind to pick Leap!

    you're a poor, poor (literally and figuratively) bastard! ;-)
     
  9. John Morgan

    John Morgan Guest

    "Chris Phillipo" <[email protected]> wrote in message
    news:[email protected]...
    >
    > Gee they develop whole motorcycles from the ground up for race series no one has ever hear of and
    > you say they are hard up for money??? Maybe they are hoping Mototard will replace grand prix
    > racing in the near future, heck they thought the lefty was a good idea.

    The Cannondale rep told me that they were a bit low on cash BECAUSE they were pouring so much money
    into their motorcycle division. Once that gets off the ground, they predict they'll be back on
    track, though...

    -John Morgan
    --
    To reply, please remove NOSPAM from the return address.
     
  10. In article <[email protected]>, [email protected] says...
    > "Chris Phillipo" <[email protected]> wrote in message
    > news:[email protected]...
    > >
    > > Gee they develop whole motorcycles from the ground up for race series no one has ever hear of
    > > and you say they are hard up for money??? Maybe they are hoping Mototard will replace grand prix
    > > racing in the near future, heck they thought the lefty was a good idea.
    >
    > The Cannondale rep told me that they were a bit low on cash BECAUSE they were pouring so much
    > money into their motorcycle division. Once that gets off the ground, they predict they'll be back
    > on track, though...
    >
    > -John Morgan
    > --
    > To reply, please remove NOSPAM from the return address.
    >
    >
    >

    Yes, that is what I said. Mototard will never get off the ground. I doubt anyone here has ever heard
    of it, the only reason I even know the series exists is that I get 15 motorcycle magazines here at
    the shop and it's mentioned in one Euro one. And don't get me started on their race losing open
    class motocross bike. The only mistake they haven't made yet is to try and break into the main
    stream 250 and 125cc classes and compete with major manufacturers.
    --
    _________________________
    Chris Phillipo - Cape Breton, Nova Scotia http://www.ramsays-online.com
     
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