Quarterly Sales Increase, but Income Falls at GT Bicycles

GT Bicycles Inc. posted lower net income for the third quarter while sales rose 8%.

The bicycle maker recorded net income of $678,000, or 7 cents a share, down from $3.6 million, or 37 cents a share, which included life insurance proceeds of about $1.5 million from the death of former president and chief executive officer Richard Long in July 1996. Sales increased 8% to $56.4 million from $52.4 million.

The company said it experienced manufacturing difficulties in July and August, but resolved them in September, which was described as “a very strong month.”

For the nine-month period, net income was $1.8 million, or 18 cents a share, compared with $8.1 million, or 81 cents a share, a year ago. Sales advanced 10% to $158.4 million from $145.4 million.