Dorel Reports Second Quarter Results
Montreal, Quebec - 8/6/2015
• Quarter organic revenue up 5%
• Home Furnishings revenues increase 30% in the quarter
• Juvenile China factories integration ahead of plan
• New model year bicycles to drive sales in second half at Dorel Sports
• Currency continues to impact earnings
Dorel Industries Inc. (TSX: DII.B, DII.A) today announced results for the second quarter and six months ended June 30, 2015. Total revenue for the quarter was US$669.6 million, up 2.1% from US$655.8 million recorded in the same period last year. Adjusted net income was US$16.6 million or US$0.51 per diluted share, compared to adjusted net income of US$19.8 million or US$0.61 per diluted share a year ago. Reported net income was US$16.2 million or US$0.50 per diluted share, compared to US$15.2 million or US$0.47 per diluted share in the second quarter of 2014.The net negative impact of foreign exchange on Dorel’s earnings equated to approximately US$0.23 per diluted share for the second quarter and US$0.53 per diluted share for the first six months of 2015.
Revenue for the six months increased 2.4% to US$1.34 billion compared to US$1.30 billion last year. First half adjusted net income reached US$28.4 million or US$0.87 per diluted share, compared to adjusted net income of US$49.2 million or US$1.52 per diluted share last year. Reported net income for the period was US$27.8 million or US$0.86 per diluted share, compared to net income of US$40.0 million or US$1.24 per diluted share in the first half of 2014.
“In Home Furnishings we are having a breakout year with revenues increasing by 29.9% in the quarter and 23.1% year-to-date. Operating profit was up 65.3% and 36.9% in the quarter and six months respectively. Dorel’s Juvenile and Sports segments continue to operate in an environment of challenging foreign exchange rates as the US dollar remains strong against practically all currencies. This had a significant effect on our earnings, impacting operating profit in the two segments combined by a net negative amount of approximately US$12 million in the second quarter alone, bringing the net negative FX year-to-date impact to approximately US$25 million. We have done a good job mitigating this impact with selective price increases and other proactive measures and our results reflect that. There have been numerous improvements at our Dorel Juvenile China factories and we are pleased with the progress of the integration process,” said Dorel President & CEO, Martin Schwartz.