Giant Motorsports sees rise in profits

Wednesday, August 23, 2006 SALEM — The parent company of Andrew Cycles posted increased revenues and profits in the second quarter. Giant Motorsports, which also owns Chicago Cycle in Chicago, said Tuesday that it earned $1.14 million in the quarter that ended June 30, compared with $1.09 million in the same quarter last year. The Salem-based company said it was hit with a higher tax bill in the second quarter, which reduced earnings. Pre-tax earnings in the second quarter were $1.73 million, compared with $1.26 million in the same quarter last year. Revenues were $39.4 million in the second quarter, compared with $35.8 million in the year-ago period. Sales at both stores benefited from expansions and longer store hours, said Greg Haehn, Giant Motorsports president and chief operating officer. The Salem store completed a $1.5 million showroom expansion last fall. Haehn reiterated his goal to become one of the largest dealers of power sports vehicles in the United States through internal growth and acquisitions. The company's stock trades at under $1 a share.