Dorel Posts Another Impressive Quarter
Montreal, Quebec - 8/5/2010
Dorel Industries Inc. (TSX: DII.B DII.A) today announced strong results for the second quarter ended June 30, 2010. Total revenue for the period was up 10.3% to US$607.7 million from US$551.1 million for the same quarter a year ago. Net income was US$35.1 million or US$1.05 per diluted share compared with US$24.8 million or US$0.74 per diluted share for the corresponding quarter of 2009.
Year-to-date revenue was US$1.2 billion, up 11.9% from US$1.08 billion last year. Net income rose to US$72.5 million or US$2.18 per diluted share compared to US$52.8 million or US$1.58 per diluted share for the first half of 2009. Organic revenue growth in both the quarter and year-to-date was approximately 9.5%.
2009 results included significant “mark-to-market” losses on foreign exchange hedging instruments in the pre-tax amount of US$12.6 million in the quarter and US$12.1 million for the first half of the year. After tax, these losses represented the equivalent of US$0.27 per diluted share for the quarter and US$0.25 per diluted share for the first six months. While earnings in 2010 do not include material mark-to-market amounts, currency rate variations versus last year have significantly reduced earnings in all three segments. For the quarter this negative impact reduced pre-tax earnings by approximately US$11 million.
“We are proud of this quarter's results. Despite negative factors such as foreign exchange, high input costs and increasing ocean freight rates, our divisions performed well and succeeded in building business slowly but steadily," said Dorel, President and Chief Executive Officer Martin Schwartz. "We maintained our pace of innovation and accelerated marketing support. Solid top-line results, in conjunction with our cost and productivity efforts, enabled us to deliver meaningful profit improvement year over year.
“We are seeing the benefits of the on-going investments in our bicycle business through improved product development, solidifying our structure and promoting our brands. Our brands are gaining wider acceptance and our bicycles are more in demand. As we continue to capitalize on our strong business model in Home Furnishings, that segment was again a significant contributor to profits as consumers recognize the value of our products, particularly during these uncertain times.”