Dorel Reports Strong Second Quarter RevenueMontreal, Quebec -
Dorel Industries Inc. (TSX: DII.B, DII.A) today announced results for the second quarter and six months ended June 30, 2019. Second quarter revenue was US$670.0 million, compared to US$623.2 million, up 7.5% from the same period a year ago. Reported net income was US$2.8 million or US$0.09 per diluted share, compared to a reported net loss of US$14.8 million or US$0.46 per diluted share last year. Adjusted net income was US$6.3 million or US$0.19 per diluted share, compared to US$12.7 million or US$0.39 per diluted share in 2018.
Revenue for the six months was US$1.30 billion, an increase of 2.4% compared to US$1.27 billion last year. Reported net loss was US$5.5 million or US$0.17 per diluted share, compared to US$10.0 million or US$0.31 per diluted share a year ago. First half adjusted net income was US$12.1 million or US$0.37 per diluted share, compared to US$18.2 million or US$0.56 per diluted share a year ago. The prior year included a first quarter impairment loss on trade accounts receivable of US$9.4 million after tax related to the liquidation of Toys“R”Us in the U.S. Without this impact, adjusted net income for the six months of 2018 was US$27.6 million or US$0.85 per diluted share.
“We are encouraged that, without exception, all our businesses have produced top- line growth. U.S. tariffs imposed on China-sourced goods and its impact on retail price points have created uncertainty on customers’ buying decisions as well as on supply chain and inventory planning processes. The chaotic market conditions have resulted in margin pressure, particularly at Dorel Home and in the mass channel at Dorel Sports. Despite this, Dorel Home has done an exceptional job of growing its top line and is now focused on inventory and margin improvement. New product launches at Dorel Sports have delivered excellent results and we remain encouraged going forward, particularly with the on-going success at Cycling Sports Group (CSG). Dorel Juvenile was ahead of last year and there has been progress in Europe, however work is continuing to drive down costs and return the segment to the proper level of profitability,” commented Dorel President & CEO, Martin Schwartz.