Singlespeed & Fixed Gear - Ingersoll-Rand Endures Kryptonite's $10 Million Hit

Ingersoll-Rand Endures Kryptonite's $10 Million Hit

OCTOBER 25, 2004 -- MONTVALE, NJ --Kryptonite delivered a $10 million hit in unanticipated costs in the third quarter to the Security and Safety division of parent company Ingersoll-Rand. Despite the setback, Ingersoll-Rand enjoyed an overall 15 percent increase in third quarter revenue to $2.4 billion.

Kryptonite's financial drubbing began in early September after Internet video clips demonstrated the apparent ease in cracking its tubular locks with the shells of ballpoint pens. Kryptonite launched replacement programs for consumers and retailers, and accelerated retail delivery of new product.

Those moves, however, hit the security division's operating margin.

"Operating margins of 16.5 percent (in the third quarter) declined compared to 2003, reflecting approximately $10 million of estimated costs related to Kryptonite cylindrical bicycle locks," the company reported Oct. 21 in a filing with the Security and Exchange Commission. Its operating margin in 2003 for the same period was 21.2 percent.

Lock company Schlage is another IR Security and Safety property.

The division also experienced a 14 percent drop in operating income in the third quarter from $88.5 million a year ago to $76.4 million this quarter. Still, the company's security and safety division posted an 11 percent increase in overall revenue to $463.4 million compared to $417.4 million last year.

The company, founded in 1871, is organized in Bermuda with corporate offices in Montvale, New Jersey. It has about 42,000 employees worldwide and a current market capitalization of approximately $11 billion with annual sales of more than $9 billion. The company trades on the New York Stock Exchange under the symbol IR.

And the savings are passed on to the customer!
WHERE IS MY ****ING LOCK?????

mid october my ass...

Bermuda? Tax haven? Or did I forget that Bermuda is such a pearl of industry.

I got my return ticket via email and mine are off to them. Anybody else have any results yet?

Nothing here yet and I contacted them the first day the video came out. What did you bribe them with?

Det noot yeet. (Nope, not yet) SBV, you gotta teach me the crazy language.

Still waiting on my return slip.

still waiting as well., and i contacted them the first day. Sucks.

i read somewhere (maybe on bikeforums; who knows) that they're sending slips out to people in the order that they registered their keys. i don't know if this is actually the way they're doing it, though.

I'm glad I'm not the only one still waiting. I was worried. glad to know others are in the same s**t-house as me.

tim

Ditto here, but I'm patiently waiting. I just bought a new lock. I figure at the rate I'm accumulating bikes I need the "extra" lock anyhow.

Speak of the devil!

"This notice alerts you KRYPTONITE/PREMIER PACKAGING has sent you an electronic
UPS Return Label."

nothing here

I couldn't give a bigger crap what sort of financial difficulty (if it in fact is) that they're having over the episode.

Speak of the devil!

"This notice alerts you KRYPTONITE/PREMIER PACKAGING has sent you an electronic
UPS Return Label."

Wow, that's what I was about to post... In my inbox when I woke up today.

So, do we send the whole lock or just the barrel?

Just the barrel.

Just the barrel.

Really? I haven't heard that. I just got my label tonight. I thought there was something said that they were going to go ahead and send you a new lock and take a credit card number, blah blah blah.

More beer now...

and then pie.

From their first email:

If you have a Kryptonite lock that has a tubular cylinder (a round key
cylinder) you are eligible for a Kryptonite non-tubular cylinder lock
exchange. The steps you take to participate in the exchange are:
1. Provide the information listed below to Kryptonite.
2. Return your current tubular cylinder Kryptonite lock to us (postage
paid).
3. Kryptonite will send you your new non-tubular cylinder lock.

I assumed that meant just the cylinder...

From my mail:

"To exchange your Kryptonite lock: Put your lock(s) and at least 1 working key into a box. Attach the UPS return tag and drop off at a UPS location"

The message has changed substantially from when Krypto first broke their silence on this whole shebang. I would go with the latest word.

(and GO SOX!!)

wait what do yo mean in the order the keys were registered? i never registered **** with either of my locks.....

I just got this:

"We have begun sending UPS call-tags to participants for their use in
returning their Kryptonite tubular cylinder locks,
and we are preparing to send their replacement locks to them.
This is being done on a first-registered, first-served basis.
If you've not yet received a call tag from us, you should be receiving one soon."

I read it to mean the order in which people registered for replacement. I never registered my keys either. Haven't gotten the call tag yet, though.

From their first email:

If you have a Kryptonite lock that has a tubular cylinder (a round key
cylinder) you are eligible for a Kryptonite non-tubular cylinder lock
exchange. The steps you take to participate in the exchange are:
1. Provide the information listed below to Kryptonite.
2. Return your current tubular cylinder Kryptonite lock to us (postage
paid).
3. Kryptonite will send you your new non-tubular cylinder lock.

I assumed that meant just the cylinder...

The cylinder is not the crossbar of a Ulock. The cylinder is the part of the lock that receives the key and has the pins. Send the whole lock. Kryptonite is paying the shipping cost.

I read it to mean the order in which people registered for replacement. I never registered my keys either. Haven't gotten the call tag yet, though.

Agreed, I got my UPS thing yesterday and I never registered my keys.

you can register your keys online on their site if you never did it.

So I guess Kryptonite expects me not to lock my bike at all, while they are busy shipping me a new one?

Has any heard of an increase in theft due to this issue? Here in Philly I haven't heard anything of the sort. I haven't seen a bunch of opened U-locks on the ground along the sidewalk either. Granted mine isn't the sort of bike that would get lifted, but I still leave it out overnight with a KryptoLok on it.

UPS just picked up my locks. No documentation, just locks in a box. This has disaster written all over it.

I agree. Before I dropped mine off, I called and asked if I needed to add some sort of note. They said no. I'm glad I got a new On Guard back when this broke. It was totally worth the $25.

i read somewhere (maybe on bikeforums; who knows) that they're sending slips out to people in the order that they registered their keys. i don't know if this is actually the way they're doing it, though.

Hmm. Okay. I bought and registered my first Krypto U in 1999. I registered another one in 2001.

They don't want me to wait for two return authorizations and make two shipments, do they?

'Cause it's too damn bad if they do.