Dorel Reports Third Quarter ResultsMontreal, Quebec -
Dorel Industries Inc. (TSX: DII.B, DII.A) today announced results for the third quarter and nine months ended September 30, 2019. Third quarter revenue was US$685.7 million, up 2.3% from US$670.4 million. Reported net loss was US$4.3 million or US$0.13 per diluted share, compared to net income of US$9.6 million or US$0.29 per diluted share last year. Adjusted net income1 was US$2.4 million or US$0.07 per diluted share, compared to US$11.0 million or US$0.34 per diluted share a year ago.
Nine-month revenue was US$1.98 billion, an increase of 2.3% compared to US$1.94 billion last year. Reported net loss year-to-date was US$9.8 million or US$0.30 per diluted share, compared to US$0.4 million or US$0.01 per diluted share in 2018. Year-to-date adjusted net income was US$14.5 million or US$0.44 per diluted share, compared to US$29.2 million or US$0.89 per diluted share a year ago.
“As expected and previously communicated, the third quarter was a difficult one primarily due to various issues related to U.S. imposed tariffs. In addition, some of our large U.S. customers delayed holiday orders from September to October.
All Dorel segments have done an excellent job of holding the line on most expenses and creative product development has resulted in many new exciting introductions. Cannondale’s new line-up is driving Cycling Sports Group success. The new product development process at Dorel Juvenile is delivering significantly improved time-to- market, though increased earnings are yet to materialize. Inventory reduction across all segments is a strong focus and is on track, and new sourcing strategies are being implemented where appropriate,” stated Dorel President & CEO, Martin Schwartz.
“Dorel Sports’ sales were very strong despite some orders being pushed back to the fourth quarter. Margins in mass were affected by tariffs, but revenue grew double digits for the first time in five years. Our bikes are selling well across all channels. Adjusted operating profit1 at Dorel Juvenile was up overall, but challenges remain in Europe. Issues related to tariffs have delayed Dorel Home’s improvement. Margin and profitability are not yet where we want them to be, but the signs are positive and progress is being made,” concluded Mr. Schwartz.