Furniture, bicycles, strollers and cribs sold by juvenile products company Dorel Industries Inc. have traditionally been resilient to recessions, CEO Martin Schwartz told shareholders at the annual meeting Wednesday.
After its best year ever in 2008, Dorel is more than satisfied with the start of 2009 in light of the current global recession, Schwartz said in his speech.
Dorel posted its best year ever in 2008 with revenues of $2.2-billion (U.S.) and net profit of $113-million. First quarter 2009 revenues were $525-million and net income was $28-million, lower than last year, but "given the context of the economic situation, we are more than satisfied with the start to the year," he said.
The CEO said Dorel's juvenile, furnishing and bicycle products have traditionally been resilient in recessionary times and business should continue to grow, especially in furnishings, where the company's ready-to-assemble furniture products are well priced.
"Our price points fit the times," Mr. Schwartz said. "Retailers have shifted gears and are offering consumers products in what we term 'opening to mid price points.'" as shoppers of every description are gravitating to the big box outlets. Dorel excels in these categories with the majority of our sales in these price points."
Dorel has 4,700 employees and operations around the world, with well-known brands such as Safety 1st, Quinny, Cosco, Maxi-Cosi and Bebe Confort as well as Cannondale, Schwinn, GT and Mongoose.