Dorel Announces Third Quarter Results
Montreal, Quebec - 11/3/2011
Dorel Industries Inc. (TSX: DII.B, DII.A) today announced results for the third quarter ended September 30, 2011. Revenue for the period increased by US$6.3 million, or 1.1%, to US$575.8 million from US$569.5 million a year ago. Net income was US$23.1 million or US$0.71 per diluted share compared to US$30.6 million or US$0.92 per diluted share in 2010.
Total nine month revenue was up US$29.2 million, or 1.6%, to US$1.80 billion from US$1.77 billion in prior year. Net income was US$77.2 million or US$2.36 per diluted share compared to US$101.8 million or US$3.06 per diluted share for the year-to-date period in 2010. Upon transition to IFRS, previously issued earnings per diluted share of US$0.91 and US$3.09 for the third quarter and nine months respectively have been restated to US$0.92 and US$3.06.
“We are disappointed with the results of our Juvenile segment, particularly in the U.S. Performance was at an unacceptable level due to the perfect storm of rapidly increasing input costs and decreased consumer demand for juvenile products. Consumers maintained a tight rein on spending and this meant we were unable to pass the majority of higher costs on to our customers. In Recreational/Leisure we maintained our momentum as the Cannondale brand becomes increasingly synonymous with product innovation. Sales to mass merchants were also up year- over-year. Home Furnishings sales were down almost 7% as POS levels were affected by the weak economy. Nonetheless the segment continues to be a good generator of cash. For the Company as a whole, year-to-date cash flow generation is up over US$30 million from last year due to improved working capital management, principally inventory reductions,” commented Dorel President and CEO Martin Schwartz.