Dorel reports first quarter results
Montreal, Quebec - 5/9/2013
Dorel Industries Inc. (TSX: DII.B, DII.A) today released results for the first quarter ended March 31, 2013. Total revenue dipped 4.3% to US$594.2 million from US$621.1 million a year ago. Net income was US$22.3 million or US$0.70 per diluted share, compared to US$29.1 million or US$0.90 per diluted share in the first quarter of 2012.
“As stated in our year-end results press release issued March 6, 2013, the year is off to a slower start than 2012 as was expected,” commented Dorel President and CEO, Martin Schwartz. “In Recreational / Leisure the expected lower quarter was compounded by exceptionally poor weather in both North America and Europe. In the U.S. the March-April period was the second coldest on record and in Europe some regions had the coldest spring in 50 years. Below normal temperatures and persistent rain and snow resulted in a 25% decrease in U.S. bicycle industry sales in March compared to last year and specifically in the IBD channel sales were off over 30%. This was in stark contrast to a year ago when abnormally mild weather in March drove higher POS levels at retail. We remain confident that the decline is a timing issue and still expect the full year earnings to exceed last year.
“As in Recreational / Leisure, operating profit for the quarter in Juvenile was lower than last year. There are challenges in the economy and consumer confidence in our more mature markets, but with controlled spending and enhanced gross margins the impact on earnings was mitigated. Latin America as a whole recorded increased profits as Dorel Chile’s revenues grew substantially and Dorel Brazil had its best operating results since 2010. Home Furnishings had one of its best quarters since 2011 as the continued growth in on-line sales helped deliver a substantial increase in earnings. We are a leader in this retail channel in furniture and the results are apparent in the quarter’s results.”