From Home Furnishing Business
Dorel Revenue off 1% in Q3
Net income for the quarter of $11.1 million was off 44.5 percent from the prior-year period.
Through 2013's first nine months, Montreal-based Dorel's revenue of $1.8 billion was off slightly from $1.87 billion at the same point last year.
Total revenue for the nine months was $1.8 billion compared to $1.87 billion in the prior year. Net income of $46.6 million was down from $79.4 million through 2012's first three quarters.
The third quarter results include one-time charges totaling $9.4 million, after tax. Year-to-date these costs total $10.5 million. The acquisition of Brazilian bicycle company, Caloi, incurred after tax costs of $4.5 million in the quarter and $5.6 million year-to-date, principally related to foreign exchange losses on the put option liability associated with the transaction. The remaining $4.9 million, after tax, pertains to Dorel's potential cost following a $26 million amount assessed in a U.S. car seat judgment against the company. Excluding these costs, third quarter net income would have been $20.5 million.
"2013 has been a challenging year in our core businesses and we have been focused on making the required adjustments including rigorous concentration on new product development," said Dorel President and CEO Martin Schwartz. "I am pleased that many innovative products have recently been launched, particularly in our Juvenile segment. Furthermore we have seen an improvement since the second quarter in Recreational/Leisure's operating profit. We are taking measures to improve this business.
"We are continuing to invest heavily in our businesses, as evidenced by the Caloi transaction and Dorel's purchase of the majority stake in the Cannondale Pro Cycling team. Home Furnishings held its revenue and operating profit steady with last year, despite a still difficult retail environment. The segment's on-line sales maintained their steady growth trend."