GT Bicycles Expects Slump in Earnings
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SANTA ANA — GT Bicycles Inc. said Monday it expects net income to slump for the third quarter because of manufacturing difficulties, delays caused by the company’s relocation and lower demand for parts and accessories.
The company said it will earn $600,000 to $800,000, or 6 to 8 cents a share, for the three months, compared to $3.6 million, or 37 cents a share, a year ago. Sales should increase to $56.2 million from $52.4 million, the company said.
Analysts had estimated earnings of 22 cents a share for the bike manufacturer.
GT Bicycles said results are below internal expectations, but the company is optimistic about the remainder of 1997 and 1998. The company said manufacturing difficulties are over, and production is back on track.
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