Dorel announces third quarter results
Montreal, Quebec - 11/7/2013
Dorel Industries Inc. (TSX: DII.B, DII.A) today announced results for the third quarter and nine months ended September 30, 2013. Revenue for the quarter was US$607.3 million compared to US$613.3 million a year ago. Net income for the period was US$11.1 million or US$0.34 per diluted share compared to US$20.0 million or US$0.63 per diluted share in 2012.
Total revenue for the nine months was US$1.80 billion compared to US$1.87 billion in the prior year. Net income was US$46.6 million or US$1.45 per diluted share, compared to US$79.4 million or US$2.48 per diluted share for the year-to-date a year ago.
The third quarter results include one-time charges totaling US$9.4 million, after tax. Year-to-date these costs total US$10.5 million. The acquisition of Brazilian bicycle company, Caloi, incurred after tax costs of US$4.5 million in the quarter and US$5.6 million year-to-date, principally related to foreign exchange losses on the put option liability associated with the transaction. The remaining US$4.9 million, after
tax, pertains to Dorel’s potential cost following a US$26 million amount assessed in a U.S. car seat judgment against the Company. Excluding these costs, third quarter net income would have been US$20.5 million or US$0.64 per diluted share.
“2013 has been a challenging year in our core businesses and we have been focused on making the required adjustments including rigorous concentration on new product development. I am pleased that many innovative products have recently been launched, particularly in our Juvenile segment. Furthermore we have seen an improvement since the second quarter in Recreational/Leisure’s operating profit. We are taking measures to improve this business,” stated Dorel President and CEO Martin Schwartz.
“We are continuing to invest heavily in our businesses, as evidenced by the Caloi transaction and Dorel’s purchase of the majority stake in the Cannondale Pro Cycling team. Home Furnishings held its revenue and operating profit steady with last year, despite a still difficult
retail environment. The segment’s on-line sales maintained their steady growth trend,” commented Mr. Schwartz.
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