Montreal, Canada -- 05/08/2009
Dorel Industries Inc. (TSX: DII.B DII.A) today released results
for the first quarter ended March 31, 2009. Revenues for the period
were US$525.2 million, down 5.5% from last year's US$556.0 million.
Net income was US$28.0 million or US$0.84 per diluted share,
compared to US$35.1 million or US$1.05 per diluted share for
the first quarter of 2008.
Dorel CEO and President Martin Schwartz stated that Dorel put in a
solid first quarter performance considering the economic environment.
"We reached and surpassed several important internal objectives
which had been established for the quarter. Our earnings are ahead
of plan and we have reduced our record level of inventory by US$90
million, exceeding our expectations as we made significant progress
in reducing these high levels created by retailers drastically cutting
their in-stock levels last year.
This will translate into a much improved cash flow as we move
through 2009. We are building on the progress made in our
Home Furnishings businesses in the past year and expect the
earnings seen thus far to continue to improve. In addition, we
will take further costs out of operations throughout the organization.
In light of the reality of the current economic situation, we are
pleased where point-of-sale (POS) levels are at our major North
American customers as consumers recognize the value of many
of our various product lines," commented Mr. Schwartz.
Total Recreational/Leisure revenue was up 14.9% for the first
quarter while earnings from operations decreased 32.6%. Organic
revenue experienced a decline, but was concentrated at mass
merchant customers which were slower to replenish their inventory
levels in bikes as compared to the other segments.
Sales through the IBD channel and SUGOI experienced organic
growth of 8% and 9% respectively. Gross margins decreased by
170 basis points due principally to a less profitable product mix
as consumers shifted to lower price point product.
Expenses increased considerably as the segment continued to
invest in its infrastructure and in product innovation, however
given the environment we are keenly aware of the importance
of cutting costs wherever possible and are actively reducing
spending as needed.
As part of that program, last month, Dorel announced a
multi-faceted Worldwide Centres of Excellence program
in a continuation of its strategy to become the global
innovation leader in the recreation and leisure markets.
A major component of the plan is the expansion of the
Bethel, CT facility into a world-class innovation center.
All North American product development, marketing and
business management for the Cannondale, Schwinn, GT
and Mongoose brands sold to the IBD channel is being
consolidated at Bethel. The centre for the development
bicycles for the mass market remains in Madison, Wisconsin.
For Full Dorel Summary Please See:
* http://www.dorel.com
* http://www.newswire.ca/en/releases/arch ... c9293.html
Profile
Dorel Industries Inc. (TSX: DII.B, DII.A) is a world class juvenile
products and bicycle company. Established in 1962, Dorel creates
style and excitement in equal measure to safety, quality and value.
The Company's lifestyle leadership position is pronounced in both
its Juvenile and Bicycle categories with an array of trend-setting
products.
Dorel's powerfully branded products include Safety 1st, Quinny,
Cosco, Maxi-Cosi and Bébé Confort in Juvenile, as well as
Cannondale, Schwinn, GT, Mongoose and SUGOI in Recreational
Leisure.
Dorel's Home Furnishings segment markets a wide assortment
of furniture products, both domestically produced and imported.
Dorel is a US$2 billion company with 4600 employees,
facilities in seventeen countries, and sales worldwide.
