Dorel Reports First Quarter ResultsMontreal, Quebec -
• Home Furnishings posts best quarter in years buoyed by record e-commerce sales
• Strong performances in Sports and Juvenile segments offset by foreign currency movement
• Integration of Dorel Juvenile China proceeding as planned
Dorel Industries Inc. (TSX: DII.B, DII.A) today released results for the first quarter ended March 31, 2015. Total revenue increased 2.7% to US$665.5 million from US$647.7 million a year ago. Net income was US$11.6 million, or US$0.36 per diluted share, compared to US$24.8 million or US$0.77 per diluted share in the first quarter of 2014. The net negative impact of foreign exchange on Dorel’s first quarter earnings equated to approximately US$0.30 per diluted share.
“As expected, Dorel’s first quarter performance was significantly affected by the continued strength of the US dollar and resulted in a net negative impact on earnings in our markets outside of the U.S. where almost half of our revenue is derived. Corporate-wide, foreign exchange reduced operating profit in reported currency by approximately US$12 million. This situation is clearly not unique to Dorel and overshadows a number of first quarter’s positive accomplishments,” stated Dorel President & CEO, Martin Schwartz.
“The integration of the Lerado facilities, now rebranded as Dorel Juvenile China, is proceeding as planned and is a critical element in creating a cohesive and efficient supply chain across the Juvenile segment. Foreign exchange significantly reduced our earnings in the Sports and Juvenile segments. In Dorel Sports excluding the impact of foreign exchange, that segment grew both its revenue and operating profit. In both Sports and Juvenile, price increases have been implemented in certain markets to mitigate the currency issues. Other markets will see price increases beginning in the second quarter. Dorel Home Furnishings posted its best quarter in several years. We are very pleased with the stability of this segment and its contribution to the Company`s profitability,” concluded Mr. Schwartz.