Dorel Reports Second Quarter 2011
Montreal, Quebec - 8/9/2011
Dorel Industries Inc. (TSX: DII.B DII.A) today announced results for the second quarter ended June 30, 2011. Total revenue for the period was US$619.0 million, up 1.9% from US$607.7 million for the same quarter last year. Net income was US$23.0 million or US$0.70 per diluted share compared with US$32.9 million or US$0.99 per diluted share for the corresponding quarter of 2010.
Year-to-date revenue was US$1.23 billion, compared to US$1.20 billion last year. Net income was US$54.2 million or US$1.65 per diluted share compared to US$71.1 million or US$2.14 per diluted share for the first half of 2010. Upon transition to IFRS, previously issued earnings per diluted share of US$1.05 and US$2.18 for the second quarter and six months of fiscal 2010 respectively have been restated to US$0.99 and US$2.14.
“Dorel’s Recreational / Leisure segment maintained its strong performance through the second quarter with a year-over-year revenue increase of 16% and an operating profit gain of 25%. With its strong focus on innovation, Cannondale has become a much desired brand and is selling very well. In addition, the marketing investments made in Schwinn have brought the desired results,” commented Dorel President and CEO, Martin Schwartz.
“Costs in the first half of 2011 are higher than last year, and given the highly conservative spending of today’s typical consumer, initiating price increases to our customers is a challenge, particularly within our Juvenile segment in the U.S. While the economic climate in Europe remains difficult, notably in southern Europe, Dorel Europe is protecting or increasing its juvenile products’ market share. Home Furnishings was affected by the still weak U.S. economy which impacted POS levels, as well as by the weaker U.S. dollar which hurt our Canadian plants shipping into the U.S,” commented Mr. Schwartz.