Share this on

Dorel Inds. profits drop 14.2% in fourth quarter

By Larry Thomas -- Furniture Today, March 16, 2009

MONTREAL — Dorel Inds., a major producer of juvenile products and ready-to-assemble furniture, said fourth-quarter profits fell 14.2% due to weak consumer demand and rising raw materials costs.

Sales for the quarter, however, were 4.6% ahead of the fourth quarter of 2007 due largely to a pair of acquisitions in the company's recreational/leisure segment.

Dorel, which reports its financial results in U.S. dollars, said total revenues for the most recent quarter were $479.9 million, compared with $458.9 million in the fourth quarter of 2007.

Net income came to $19.2 million or 57 cents per share, down from $22.3 million or 67 cents per share in the comparable quarter in 2007.

The company said revenues for the juvenile products segment declined 11.2% to $228.7 million in the quarter.

Dorel's home furnishings segment, meanwhile, had fourth-quarter revenues of $97.4 million, a drop of 15.7% from the fourth quarter of 2007.

The company said the sales declines were steepest in its metal folding furniture and futon businesses. However, sales at its Ameriwood RTA division were up slightly and earnings “significantly improved” in the segment, the company reported.

For all of 2008, Dorel said total revenues were $2.18 billion, an increase of 20.3% from 2007.

Full-year earnings were $112.9 million or $3.38 per share. That's an increase of 29% from earnings of $87.5 million or $2.63 per share in 2007.

Revenues from the juvenile products segment, the company's largest business unit, rose 9.1% for the year to $1.11 billion.

Home furnishings segment revenues for 2008 were $428.7 million, an increase of 1.5% from 2007.

Dorel Inds.
Owns Ameriwood, Charleswood, Cosco and Ridgewood
Earnings per share are fully diluted, and all figures in parentheses are losses or declines.

Quarter ended 12/30	2008	2007	Change
(a) Includes licensing and commission income revenue of $4.1 million in the 2008 quarter, $4 million in the 2007 quarter, $17.1 million in the 2008 year and $21.1 million in the 2007 year. (b) Includes pretax restructuring gain of $724,000 in the 2008 quarter and pretax restructuring costs of $1.8 million in the 2007 quarter, $726,000 in the 2008 year and $14.5 million in the 2007 year.
Revenues (a)	$479,880,000	$458,853,000	4.6%
Operating income	38,057,000	48,582,000	(21.7%)
Net income (b)	19,167,000	22,348,000	(14.2%)
Earnings per share	0.57	0.67	(14.9%)
Year ended 12/30	2008	2007	Change
Revenues (a)	$2,181,880,000	$1,813,672,000	20.3%
Operating income	211,625,000	193,456,000	9.4%
Net income (b)	112,855,000	87,492,000	29.0%
Earnings per share	3.38	2.63	28.5%

Share this on

Dorel Inds. profits decline in fourth quarter

Mar 12, 2009

Also by this author

Also by Larry Thomas

Featured Company

Surya

For more than 30 years, the name Surya has been synonymous with high quality, innovation and luxury. Our Fall 2009 collections are no exception. Our designers have masterfully created some of the most cutting edge and versatile pieces to date. Encompassing... more

Related Resources

Shopatron: Bicycles & eCommerce

Atlanta International Gift & Home Furnishings Market

Here is a selection of products shown at this month's International Gift & Home Furnishings Market here.

Networking at the 13th annual F/T Leadership Conference

NAPLES, Fla. — Industry executives and guests took the opportunity to network and play golf during down time at Furniture/Today's 13th annual Leadership Conference here this month.