Dorel Reports 2011 Fourth Quarter And Full Year Earnings
Montreal, Quebec - 3/8/2012
Dorel Industries Inc. (TSX: DII.B DII.A) today announced results for the fourth quarter and year ended December 30, 2011. Revenue for the fourth quarter increased 4.1% to US$561.6 million from US$539.5 million a year ago. Net income rose 5.5% to US$27.4 million or $US0.85 per diluted share from US$25.9 million, or US$0.79 per diluted share last year.
Revenue for the full year grew 2.2% to US$2.4 billion as compared to US$2.3 billion in 2010. Net income decreased 18.1% to US$104.6 million, or US$3.21 per diluted share from US$127.7 million or US$3.85 per diluted share last year. Net income includes US$12.2 million recorded as a reduction in corporate general and administrative expenses. This non-taxable amount is from a change in the assumed estimated future acquisition price on contingent consideration and put option liabilities related to certain past business acquisitions.
Commenting on the results, Dorel CEO and President, Martin Schwartz stated: “Versus the third quarter, the Juvenile segment did reverse the year’s downward earnings trend, although results were not yet where we had hoped they would be. Demand for juvenile products in the U.S. has increased somewhat. In Europe, despite the general negative economic environment, Dorel Europe improved its performance over the third quarter and maintained market share. Dorel Chile, established after our November 2011 transaction with the Silfa Group, has been accretive to earnings, even with its contribution limited to the month of December.
“In Recreational / Leisure, a shift in the timing of the introduction of new model year bikes meant sales for the quarter were down slightly versus last year, but this business remains very solid in both the independent bicycle dealer (IBD) and mass market channels. A clear indication of the success of our R&D efforts was the recognition by “Tour”, a prestigious German bicycle trade magazine, of the Cannondale Super Six Evo Ultimate. It was awarded the top score in a review of “The Best Road Bikes in the World over the Past Ten Years”. This is the first time this magazine has given this award which was based on ten years of reviews of over 2000 bikes. Home Furnishings had a very good quarter and we are pleased to see that demand has once again picked up,” concluded Mr. Schwartz.