News Column

Dorel second-quarter profits rise nearly 15 per cent on recreational division

August 6, 2014

The Canadian Press

MONTREAL - Dorel Industries Inc. (TSX:DII.B) says second-quarter net income rose 14.9 per cent to US$15.2 million, driven by momentum in its bicycle division.

The Montreal-based maker of bicycles, car seats and ready-to-make furniture reports in U.S. dollars and earned 47 cents per share for the three months ended June 30. That compared to $13.2 million or 41 cents per share a year ago.

Revenue grew 9.2 per cent to $655.8 million from $600.4 million, helped by growth in its recreational and leisure segment.

The recreation and leisure division's operating profit more than tripled to $15.2 million from $3.7 million on a 20 per cent boost in sales to $286.2 million.

Dorel said costs related to last year's acquisition of Caloi, a South American bicycle manufacturer, caused the results to be lower than hoped.

It said Caloi is growing market share but a slowing economy in Brazil and consumer focus on the World Cup soccer tournament shifted attention away from the bicycle business.

The juvenile division's operating profit increased 2.2 per cent to $16.2 million on $251.3 million in revenues.

Home furnishings profits were $5.2 million, down 27 per cent from $7.2 million a year ago, as revenues slipped to $118.3 million.

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Source: Canadian Press DataFile

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