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Dorel Industries CEO Martin Schwartz, right, chats with professional cyclist Peter Sagan, left, in 2013. Dorel owns the Cannondale brand of bicycles.Graham Hughes/The Globe and Mail

The surging U.S. dollar continues to eat away at the earnings of companies that depend on foreign sales for a large part of their business.

The latest casualty is Montreal-based Dorel Industries Inc., which warned on Thursday that the rise in the value of the U.S. dollar against most of the company's other operating currencies "is expected to have significant negative effect" on earnings through 2015.

The decline in the euro's value is particularly damaging, Dorel said.

About half of Dorel's net income now comes from Europe, South America and Asia.

"Since November, when we reported our third quarter results, the U.S. dollar has continued to strengthen to its highest level in many years versus several major currencies and we expect this to impact us through the current year," Dorel president and chief executive officer Martin Schwartz said.

The euro is currently at its lowest level in five years "and therefore is expected to depress Dorel's 2015 results," the company said.

Other multinational companies that have been hit by the U.S. dollar's surge include Microsoft Corp., Procter & Gamble Co. and Pfizer Inc.

Mr. Schwartz said it is too early to put a number on the impact of the greenback's rise on Dorel results. And he added this will be offset somewhat by several factors: new products being launched that reflect the unfavourable currency movement and are priced accordingly, and suitable price increases being negotiated with many retailers.

Also helping are the drop in oil prices and many commodities as well as the more robust U.S. economy, where Dorel's three segments have a major presence.

The home furnishings division will benefit from the fact that some of Dorel's products are made in Canada and sold in the U.S., the company said.

Dorel's two other segments are bicycles and juvenile products.

Brands include Schwinn and Cannondale bikes and Safety 1st and Quinny car seats and strollers.

Last year, Dorel acquired Hong Kong-based stroller-and-car-seat maker Lerado Group in a $120-million deal to expand its presence in Asia.

In 2013, it took a majority stake in Brazil's largest bicycle company, Caloi.

Dorel is scheduled to release its full 2014 results on March 16.