Medway, MA — Despite increased sales for 2008, Cybex International Inc. has had two recent quarters of sales decline, including its most recent quarter. The company had $28.9 million in net sales in the first quarter of 2009, a 27 percent decrease compared to the $39.8 million it had in the corresponding 2008 period, according to financials released last month. Cybex also reported a net loss for the first quarter of 2009 of $1.4 million compared to net income for the first quarter of 2008 of $1.3 million.
“Q1 sales levels were obviously weak,” John Aglialoro, Cybex chairman and CEO, said in a company statement. “We believe that a principal cause of the sales decline is customers, particularly fitness clubs and similar facilities, delaying purchases. While this is reflective of economic conditions, generally and in the fitness market, it makes financial projections even more difficult than usual. Margins were negatively affected in Q1 by a variety of factors, including lower volume and the pricing of raw material, especially steel, compared to the same period in 2008.”
Aglialoro is projecting lower steel prices in the second quarter, which he says should help reduce manufacturing costs.
In the meantime, Cybex's management has focused on expense reduction in response to the current economic conditions, Aglialoro says.