S
Spademan O----L
Guest
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 **** 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.
BTW Notice how folks in alt.bmx are interested all aspects of cycling and don't come out with some
maginalised **** 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.
