Martin Schwartz, president and chief executive officer of Dorel Industries Inc., speaks during an annual general meeting in Montreal on June 21, 2006.CHRISTINNE MUSCHI/Reuters
Dorel Industries Inc. says second-quarter net income rose 14.9 per cent to $15.2-million (U.S.), driven by momentum in its bicycle division.
The Montreal-based maker of bicycles, car seats and ready-to-make furniture reports in U.S. dollars and earned 47 cents per share for the three months ended June 30. That compared to $13.2-million or 41 cents per share a year ago.
Revenue grew 9.2 per cent to $655.8-million from $600.4-million, helped by growth in its recreational and leisure segment.
The recreation and leisure division's operating profit more than tripled to $15.2-million from $3.7-million on a 20 per cent boost in sales to $286.2-million.
Dorel said costs related to last year's acquisition of Caloi, a South American bicycle manufacturer, caused the results to be lower than hoped.
It said Caloi is growing market share but a slowing economy in Brazil and consumer focus on the World Cup soccer tournament shifted attention away from the bicycle business.
The juvenile division's operating profit increased 2.2 per cent to $16.2-million on $251.3-million in revenues.
Home furnishings profits were $5.2-million, down 27 per cent from $7.2-million a year ago, as revenues slipped to $118.3-million.