Dorel reports third quarter results
Montréal, Québec - 11/2/2017
Dorel Industries Inc. (TSX: DII.B, DII.A) today announced results for the third quarter and nine months ended September 30, 2017. Third quarter revenue was US$642.6 million, down 4.3% from US$671.3 million. Adjusted net income was US$14.5 million or US$0.44 per diluted share, compared to US$20.6 million or US$0.63 per diluted share a year ago. Reported net income was US$13.3 million or US$0.41 per diluted share, compared to US$15.9 million or US$0.49 per diluted share last year.
For the nine months, revenue was US$1.90 billion, a decrease of 2.8% compared to US$1.95 billion last year. Adjusted net income was US$49.7 million or US$1.52 per diluted share, compared to US$50.5 million or US$1.55 per diluted share a year ago. Reported net income year-to-date was US$33.6 million or US$1.03 per diluted share, compared to a reported net loss of US$6.0 million or US$0.19 per diluted share in 2016.
“We are pleased with the third quarter progress at Dorel Home and Dorel Juvenile. Dorel Home’s positive revenue and earnings trend was maintained as on-line sales exceeded US$100 million for the quarter, again accounting for more than 50% of the segment’s total revenue. The segment’s focus on improving speed and efficiency of distribution continue to drive sales with major on-line retailers. Dorel Juvenile recorded its first quarter of organic revenue growth in several quarters. E-commerce growth is driving sales as Dorel Juvenile has adapted well to today’s consumer, and as a result is gaining market share in this channel. Results at Dorel Sports declined as the segment is caught in the on-going weakness in the global bicycle market and a very challenging North American brick and mortar environment. Although the bicycle industry environment remains difficult, we expect Dorel Sports’ fourth quarter to return to solid profitability. The Toys “R” Us situation resulted in an almost month-long sales disruption in all segments, but we have agreed on business terms with them going forward,” stated Dorel President & CEO, Martin Schwartz.
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