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Dorel profit falls sharply Add to ...

Consumer goods maker Dorel Industries Inc. says its first-quarter profit fell 18 per cent, missing analyst estimates for earnings.

Profit at the Montreal-based company, which reports in U.S. currency, dropped to $31.2-million (U.S.) from $38.2-million.

Earnings per share fell by a similar amount to 94 cents from $1.15 per diluted share.

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Analysts had been looking for $1 per share in earnings, according to figures compiled by Thomson Reuters.

In terms of revenue, Dorel did better than expected - reporting a 1.9-per-cent increase to $607.8-million from $596.3-million.

Analysts had expected Dorel's revenue would fall to $591-million.

Dorel chief executive officer Martin Schwartz said the company's bicycle business was a high-light of the quarter but that was offset by a "challenging retail environment" for the company's U.S. juvenile products business.

"Home Furnishings revenues were stronger both year-over-year and particularly sequentially, but factors including high commodity prices and freight rates, as well as the weakening U.S. dollar resulted in lower earnings compared to last year's first quarter," Mr. Schwartz said in a statement.

The company recently faced a recall of its children's bunk bed due to a structural fault that can cause the double-decker bed to collapse.

Almost 22,000 of the pine-coloured wooden bunk beds were sold in Canada and another 445,000 were sold in the United States.

There have been no reports of incidents or injuries in Canada, but seven reports of minor bruises and abrasions in Asia.

The company recently announced it would suspend importing drop-side cribs due to new legislation banning them until the impact of the legislation has been assessed. He said the impact of crib recall on its 2010 earnings was approximately $5-million.

Established in 1962, the Montreal-based company is one of the world's largest manufacturers of juvenile products such as infant car seats, and bicycles. It also makes ready-to-assemble furniture.

Its juvenile brands include Safety 1st, Quinny, Cosco and Maxi-Cosi, while it sells bikes under the Cannondale, Schwinn, GT, Mongoose and IronHorse marks.

Dorel has 4,600 employees working in facilities in 19 countries.



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