Dorel Reports Solid Second Quarter 2012
Montreal, Quebec - 8/9/2012
Dorel Industries Inc. (TSX: DII.B, DII.A) today announced results for the second quarter and six months ended June 30, 2012. Total revenue for the period was US$633.7 million, up 2.4% from US$619.0 million for the same quarter last year. Net income increased by 32.0% to US$30.3 million or US$0.95 per diluted share compared with US$23.0 million or US$0.70 per diluted share for the corresponding quarter of 2011.
Year-to-date revenue rose 2.3% to US$1.25 billion from to US$1.23 billion last year with net income for the six months increasing by 9.9% to US$59.5 million or US$1.85 per diluted share. This compares to net income of US$54.2 million or US$1.65 per diluted share for the first half of 2011.
The Board of Directors of Dorel has declared an increase in the Company’s quarterly dividend to US$0.30 from US$0.15 on the Class A Multiple Voting Shares, Class B Subordinate Voting Shares and Deferred Share Units (DSU) of the Company. The first increased dividend amount of US$0.30 per share and DSU will be payable on September 6th, 2012 to shareholders of record at the close of business on August 23rd, 2012. The dividend policy was originally instituted in March 2007. Shareholders will now receive a total of US$1.20 per share per annum.
“Dorel has a proven track record of earnings and cash flow. We are optimistic about our long-term future earnings and are confident in our ability to sustain an increased dividend, thereby enhancing total return to our shareholders,” stated Dorel President and CEO Martin Schwartz.
“Dorel performed well in our various business segments, despite a stubborn and unstable economy in the majority of our geographic markets. We have maintained the positive momentum established in the final quarter of 2011 through a combination of strong marketing and judicious cost containment.
“Operating profit in the Juvenile segment grew 15% over the same quarter a year ago, despite a strengthening U.S. dollar which reduced earnings by approximately US$3.5 million in the quarter compared to the prior year. Dorel Juvenile Group (DJG) USA improved as the tactical plan put in place last year has started to bring the needed results. Europe as a whole is very challenging, yet Dorel Europe maintained its profitability with solid results in Northern Europe and the positive contribution of the newly acquired Dorel Polska, based in Poland. Another positive is Dorel Chile which saw growth in both its wholesale and retail businesses.
“Recreational/Leisure’s top line grew once again, though it was tempered by adverse foreign exchange rates. Profits in the quarter were flat as the negative impact of currency reduced earnings by approximately US$2.5 million. Intense branding of the Cannondale line continues to drive results. The Liquigas Cannondale Pro-Cycling Team has performed well this year with various victories. In the recently completed Tour de France, Peter Sagan won the prestigious green jersey as well as three stages in the overall tour and Vincenzo Nibali placed third overall. We are pleased with the sponsorship of the team and intend to maintain Dorel’s commitment to the promotion of our brands. As well, we continue to invest in R&D, driving expansion and distribution across the globe. Operating profit for the quarter grew in Home Furnishings and Internet sales were up considerably,” commented Mr. Schwartz.