Dorel Announces Improved Third Quarter Results
Montreal, Quebec - 11/6/2014
Dorel Industries Inc. (TSX: DII.B, DII.A) today announced results for the third quarter and nine months ended September 30, 2014. Revenue for the quarter increased 10.8% to US$673.0 million compared to US$607.3 million a year ago. Net income for the period rose 75.4% to US$19.5 million or US$0.60 per diluted share compared to US$11.1 million or US$0.34 per diluted share in 2013.
Total revenue for the nine months was up 9.7% to US$1.98 billion compared to US$1.80 billion in the prior year. Net income increased by 27.5% to US$59.5 million or US$1.83 per diluted share, compared to US$46.6 million or US$1.45 per diluted share for the year-to-date a year ago.
“Marking the third quarter were a number of positive highlights in all three segments. Results were generally good across most of our juvenile divisions and this was despite the strength of the US dollar relative to last year reducing earnings by around US$4.0 million. Product development was showcased at two major juvenile trade shows and there is a substantial number of new product introductions scheduled for next year. There has been a great deal of activity associated with our newly-acquired facilities in China and Taiwan. We see the Lerado transaction as a game-changer for Dorel and there has been a team in place coordinating the integration changeover for several months,” said Martin Schwartz, Dorel President & CEO.
“We continue to be pleased with the sustained progress in our Recreational/Leisure segment. For the third consecutive quarter, segment revenue grew by double digits. The Cannondale Sports Group (CSG) has had a solid nine months and we see a bright future for this business with a dynamic management team in place. Caloi’s operating profit was positive after losses during the first half and we still expect the bulk of Caloi’s earnings during the current fourth quarter. In the mass channel, Pacific Cycle posted healthy increases with quarterly performance exceeding prior year in both revenue and operating profit. We look forward to an excellent racing year in 2015 with our new partners, Slipstream Racing.
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