Dorel reports second quarter 2013
Montreal, Quebec - 8/9/2013
Dorel Industries Inc. (TSX: DII.B, DII.A) today announced results for the second quarter and six months ended June 30, 2013. Total revenue for the three month period was US$600.5 million, down 5.2% from US$633.7 million for the same quarter last year. Net income was US$13.2 million or US$0.41 per diluted share, a decrease of 56.4% from US$30.3 million or US$0.95 per diluted share reported for the second quarter a year ago. Year-to-date revenue was US$1.2 billion compared to US$1.25 billion last year. Net income for the six months was US$35.5 million or US$1.11 per diluted share compared to US$59.4 million or US$1.85 per diluted share.
“As we announced in June, second quarter earnings in the Recreational/Leisure segment continued to be affected by the late spring across the U.S., Canada and Europe. The resultant global slowdown in the bicycle category lowered sales in just about all markets, creating higher bicycle inventories and industry-wide discounting, particularly in the independent bicycle dealer (“IBD”) channel. This discounting, combined with foreign exchange losses and one-time severance costs significantly affected the segment’s second quarter profits,” explained Dorel President and CEO Martin Schwartz.
“To be clear, these are matters beyond our control. Dorel’s bicycle products are proven and our brands remain strong. We have continued to invest strategically in sports marketing to maintain our brand strength. Cannondale’s Pro Cycling Team has once again proven beneficial with Peter Sagan winning the Green Jersey in the recent Tour de France for the second consecutive year. The Green Jersey is the race’s second most important award. On another positive note, the introduction of Cannondale to the Chinese market last year has been above our expectations. While still a small component of the overall bicycle business, we see further potential in this important market.
“Juvenile’s performance was down year-over-year due mainly to reduced profitability in Europe where economic conditions remain difficult and are pressuring earnings. New product development remains a key focus and innovative new introductions are planned for later this year. Dorel Chile continued to post strong top and bottom line numbers. While there was a slight decline in Home Furnishings’ sales to the in-store channel, the segment had another solid quarter registering improved earnings, as sales to its e-commerce customers continue to grow significantly,” said Mr. Schwartz.
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