Dorel reports significant first quarter improvement
Montreal, Quebec - 5/8/2014
Dorel Industries Inc. (TSX: DII.B, DII.A) today released results for the first quarter ended March 31, 2014. Total revenue increased 9% to US$647.7 million from US$594.2 million a year ago. Net income was US$24.8 million, up 11.1%, or US$0.77 per diluted share, compared to US$22.3 million or US$0.70 per diluted share in the first quarter of 2013.
“All three Dorel business segments improved during the first quarter, with the most dramatic gains in our Recreational/Leisure segment,” stated Dorel President and CEO, Martin Schwartz. “Sales rebounded at both Cannondale Sports Group (CSG) and Pacific Cycle as the global bicycle market strengthened. Coupled with management’s intense restructuring efforts and other cost containment initiatives, operating profit in the segment was up 71% over last year’s first quarter. The recovery in CSG was driven by a strong performance in Europe and the UK due to an early start to spring abroad. The integration of our Caloi acquisition is going well but that business is very seasonal so the first quarter segment operating results were slightly negative with Caloi profitability only beginning in the second quarter.”
Accordingly, Dorel has decided to promote Peter Woods from Interim Group President & CEO to Group President & CEO, Recreational/Leisure segment.
“We are also encouraged that the Juvenile segment is now moving in the right direction, as results for the first quarter exceeded prior year. Dorel Juvenile USA has had a good start to the year with a considerable increase in operating earnings. As announced in March, currency took a toll on many of our other markets and it had been expected that the first quarter would be slightly below prior year. However, the strong U.S. performance more than offset the foreign exchange fallout and the segment’s operating profit surpassed last year by 9.2%. Home Furnishings was up modestly with sales through the Internet channel and its drop ship vendor programs growing significantly year-over-year, compensating for a drop in sales to brick and mortar stores.”
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