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Dorel Q1 Sales Off 4.3%
By Home Furnishings Business in Financial Reports on May 9, 2013
Juvenile furniture and bicycle vendor Dorel Inds. reported first quarter 2013 revenue of $594.2 million, a 4.3 percent drop from the prior-year period.
Net income was $22.3 million, or $0.70 per diluted share, compared with $29.1 million, or $0.90 per diluted share, in the first quarter of 2012.
"As stated in our year-end results press release issued March 6, 2013, the year is off to a slower start than 2012 as was expected," said Dorel President and CEO, Martin Schwartz. "In Recreational/Leisure the expected lower quarter was compounded by exceptionally poor weather in both North America and Europe."
He noted that in the U.S. the March-April period was the second coldest on record; and that some regions in Europe had the coldest spring in 50 years.
"As in Recreational/Leisure, operating profit for the quarter in Juvenile was lower than last year," Schwartz said. "There are challenges in the economy and consumer confidence in our more mature markets, but with controlled spending and enhanced gross margins the impact on earnings was mitigated."
He added that Dorels' Latin America business as a whole recorded increased profits as Dorel Chile's revenues grew substantially; and Dorel Brazil had its best operating results since 2010.
"Home Furnishings had one of its best quarters since 2011 as the continued growth in on-line sales helped deliver a substantial increase in earnings," Schwartz said. "We are a leader in this retail channel in furniture and the results are apparent in the quarter's results."