Dorel Industries Inc., the maker of bikes and other products for children, missed expectations Friday by reporting a 6.4-per-cent drop in first-quarter profits to $29.2-million (U.S.) despite higher revenues.
The Montreal-based company, which reports in U.S. dollars, earned 91 cents per share for the period ended March 31. That compared to 94 cents per share or $31.2-million a year earlier.
CEO Martin Schwartz noted that the results had to compare with a particularly strong first quarter last year, even though subsequent periods made it a tough year overall for Dorel.
Revenues increased 2.2 per cent to $621.1-million from $607.8-million the year-ago period.
The company was expected to earn $1.08 per share on $636-million of revenues, according to analysts polled by Thomson Reuters.
Dorel said momentum is returning to its juvenile segment that makes car seats and other child products as the quarterly results were the best in a year.
Still, operating profits decreased to $206.7-million from $236.7-million a year ago on flat sales of $269.5-million.
The recreational and leisure segment posted a record quarter. It earned $21.4-million on $220.9-million of revenues. That compared to $17.8-million on $200.4-million of sales a year earlier.
Home furnishes operating profit fell to $5.8-million from $7.8-million last year as revenues decreased 5 per cent to $130.7-million.
Dorel has some 5,000 employees in 22 countries worldwide.
Its juvenile brands include Safety 1st, Quinny, Cosco and Maxi-Cosi, while it sells bikes under the Cannondale, Schwinn, GT, Mongoose and IronHorse marks.
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