From Home Furnishing Business
Dorel Sales off 2 percent 2013
Montreal-based Dorel's fourth-quarter net income fell from $29.1 million in 2012 to $11 million. The company had previously announced a restructuring of its Recreational/Leisure segment, with a total pre-tax charge of $14 million to $16 million. Included in this fourth quarter is $13.5 million pre-tax, related to this restructuring with the balance to be incurred in 2014. Excluding the impact of these restructuring charges, adjusted net income for the quarter was $19.2 million .
Revenue for the full year was $2.4 billion, down 2.2 percent from 2012. Net income was $57.7 million, compared with $108.5 million.
"2013's performance was disappointing," said Dorel President and CEO Martin Schwartz. "A number of the issues we faced were industry and economy related, while others were the result of less than perfect execution on our part. As announced last month, our Recreational/Leisure segment was negatively affected by top line weakness and a poorer product mix as mass merchant store traffic in general was reduced and the independent bike dealer (IBD) channel was reluctant to increase inventories going into the new year. Matters in our direct control are being addressed and there has been definite progress."
Click here for the complete Dorel fourth-quarter and year-end release.