Dorel Reports Sales Increases

March 12, 2007  by in UnCategorized   

By Home Furnishings Business in on March 2007 Dorel, Montreal, which produces a wide range of juvenile products and ready-to-assemble furniture, reported Monday that its fourth-quarter revenues increased 4.1 percent to $447.9 million in U.S. dollars. Net income for the quarter decreased 3.9 percent to $21.7 million.

The fourth quarter revenue figure includes $4 million in pre-tax restructuring costs as part of an ongoing initiative to reduce costs at two Dorel Europe factories that make juvenile products. For the full year that ended Dec. 30, revenues totaled $1.77 billion, up from $1.76 billion, and net income totaled $88.9 million, which was down from $91.3 million in the prior year.

In the home furnishings segment, which includes its Ameriwood and Cosco Home & Office brands, fourth quarter revenue declined 2.4 percent to $145.3 million. Adjusted earnings from operations rose 9 percent to $8.9 million. Total 2006 revenue declined 4.5 percent to $541.9 million. The company reported that the fourth quarter figure includes a charge of $4.5 million due to anti-dumping duties imposed by the U.S. Deparment of Commerce on certain metal furniture from China from Dec. 3, 2001 through May 31, 2003. The company had expected the cost of those duties to be $2.5 million, but, with a higher-than-expected duty rate, the payments actually totaled $4.5 million. The company said it has a pending claim against an unnamed international law firm for what it called a “breach of professional duty” for failing to file a timely request with the Department of Commerce for an administrative review.