Dorel Reports First Quarter Results
Montreal, Quebec - 5/18/2011
Dorel Industries Inc. (TSX: DII.B DII.A) today released results for the first quarter ended March 31, 2011. Revenue reached US$607.8 million, up 1.9% from US$596.3 million a year ago. Net income was US$31.2 million or US$0.94 per diluted share, compared to last year’s US$38.2 million or US$1.15 per diluted share. Upon transition to International Financial Reporting Standards (IFRS), previously issued earnings per diluted share for the first quarter of 2010 which was reported as US$1.12, have been restated to US$1.15.
"A highlight of the first quarter results is the momentum of the Company’s bicycle Schwinn business, particularly in the IBD channel. Improved earnings in that segment were Mongoose offset by a challenging retail environment for our U.S. juvenile products business. Home Furnishings revenues were stronger both year-over-year and particularly sequentially, but factors including high commodity prices and freight rates, as well as the weakening US dollar resulted in lower earnings compared to last year’s first quarter. I am pleased to report that the high 2010 year-end inventories have started to come down and this will convert into improved cash flow as we move through the year,” stated Dorel CEO and President Martin Schwartz.