Dorel reports second quarter resultsMontreal, Quebec -
Dorel Industries Inc. (TSX: DII.B, DII.A) today announced results for the second quarter and six months ended June 30, 2017. Second quarter revenue was US$611.3 million, down 4.1% from US$637.3 million recorded in the same period a year ago. Adjusted net income increased 22.1% to US$12.4 million or US$0.38 per diluted share, compared to adjusted net income of US$10.2 million or US$0.31 per diluted share last year. Reported net income was US$11.4 million or US$0.35 per diluted share, compared to reported net loss of US$38.6 million or US$1.19 per diluted share in the second quarter of 2016.
Revenue for the six months was US$1.26 billion, a decrease of 2.0% compared to US$1.28 billion last year. First half adjusted net income increased to US$35.1 million or US$1.08 per diluted share, compared to adjusted net income of US$29.9 million or US$0.92 per diluted share a year ago. Reported net income for the period was US$20.3 million or US$0.62 per diluted share, compared to a reported net loss of US$21.9 million or US$0.68 per diluted share in the first half a year ago.
“Dorel Home’s on-line sales exceeded 50% of segment revenue for the first time, resulting in another stellar performance for the quarter. The continued growth in e-commerce has allowed greater flexibility to expand the segment’s on-line offerings with additional excellent value products at higher price points. Disciplined cost management and better gross margins at Dorel Sports offset lower revenues, resulting in the fourth consecutive quarter of year-over-year earnings improvement. In Juvenile, we had a quarter that was below our expectations. We corrected many of our first quarter manufacturing issues in China in the past 60 days and our production levels have increased significantly. This did lead to higher costs, but as we enter the second half of the year, Dorel Juvenile is poised for a strong rebound from its second quarter. This will come from a robust product introduction execution across all of our operating businesses and with our most important retail customers; as well as additional factory improvements taking effect,” commented Martin Schwartz, Dorel President & CEO.