Dorel Industries' recreational and leisure division, which includes the bicycle and equipment brands Cannondale, Schwinn, GT, Mongoose and Sugoi, increased sales by 10.3 percent to $200.4 million in the first quarter. Growth was entirely organic and not influenced by currency rates. The business' gross margin was flat at 25.4 percent and operating profits grew by 17.9 percent to $17.8 million. Sales were supported by a 25 percent increase in the independent bicycle dealer channel. The channel enjoyed sales growth in all markets, but it was strongest for the Cannondale and GT brands in Europe and Australia. Turnover in the mass merchant category declined by a mid-single digit, due in part to poor weather and the late Easter holiday period, but the group has noticed signs of improvement in this channel in the past weeks. Dorel's overall revenues grew by 1.9 percent to $607.8 million. Net income declined to $31.2 million from $38.2 million a year earlier.

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