Dorel Reports Strong Second Quarter Revenue
Montreal, Quebec - 8/10/2020
Dorel Industries Inc. (TSX: DII.B, DII.A) today announced results for the second quarter and six months ended June 30, 2020. Second quarter revenue was US$724.0 million, compared to US$670.0 million, up 8.1% from the same period a year ago. Reported net income was US$11.1 million or US$0.34 per diluted share, compared to US$2.8 million or US$0.09 per diluted share last year. Adjusted net income1 was US$15.6 million or US$0.48 per diluted share, compared to US$6.3 million or US$0.19 per diluted share last year.
Revenue for the six months was flat at US$1.3 billion. Reported net loss was US$46.7 million or US$1.44 per diluted share, compared to US$5.5 million or US$0.17 per diluted share a year ago. First half adjusted net income was US$2.0 million or US$0.06 per diluted share, compared to US$12.1 million or US$0.37 per diluted share a year ago.
“Dorel’s overall revenues have recovered sharply from the initial negative effects of COVID-19 with strong performances in two of our three segments. Dorel Sports and Dorel Home benefitted from increased demand for its products as consumers sought bicycles and home furnishing products during the prolonged lockdown periods. Increased sales of in-stock items allowed both segments to reduce inventory to record low levels. Dorel Juvenile remained challenged through the first half of the quarter, hurt by continuing store closures in many of its markets, a situation which began reversing as more stores reopened during the latter part of the period. Our divisions did an excellent job of reducing costs and holding discretionary spending and as a result, selling expenses were down considerably. Our balance sheet has improved significantly from year-end with significant reductions in inventories and overall debt. I am extremely grateful to our employees worldwide who demonstrated their clear commitment to Dorel by directly contributing to our lower costs in the second quarter and who continued working at our facilities under enhanced safety protocols,” commented Dorel President & CEO, Martin Schwartz.