Dorel 4Q sales rise 34.3% as net income grows 41.9%
By Furniture Today Staff -- Furniture Today, March 7, 2004
Montreal — Dorel Inds., Canada's largest furniture maker, said fourth-quarter sales leaped 34.3% to $323.7 million as net income surged 41.9% to $20.8 million.
For the year, it posted sales of $1.2 billion, up 17.3%, as net income rose 22% to $75 million. Dorel reports in U.S. dollars.
Martin Schwartz, president and CEO, attributed much of the gains to the acquisitions of juvenile products maker Ampafrance in Europe and Canadian ready-to-assemble furniture producer Carina.
"The Carina acquisition helped us broaden our customer base in RTA furniture," he said, adding that margin improvements and "our strict cost-reduction culture" helped boost profits in 2003.
Dorel's home furnishings unit saw sales rise 6.5% last year to $493.7 million. For the fourth quarter, sales increased 14.2% to $152.7 million. Schwartz said the unit met earnings expectations despite sales disappointments. While Cosco Home & Office and Dorel Asia continue to grow, RTA furniture business remains flat, he said.
"Compared to others in the RTA furniture industry, this is a standout performance," Schwartz said. He also cited "the strong performance of the futon business, which allowed the Ameriwood group as a whole to match last year's earnings levels."
Dorel forecasts the home furnishings unit should post sales of between $540 million and $590 million in 2004, with company-wide sales climbing to between $1.6 billion and $1.8 billion.
Sales for its larger juvenile unit rose 26.8% to $670.1 million in 2003, while fourth-quarter sales jumped 59.4% to $171 million.
| • Dorel Inds. | |||
|---|---|---|---|
| Owns Ameriwood, Charleswood, Cosco and Ridgewood | |||
| Earnings per share are fully diluted. | |||
| Quarter ended 12/30 | 2003 | 2002 | Change |
| (a) Based on average shares outstanding of 32.7 million in the 2003 quarter, 32 million in the 2002 quarter, 32.4 million in the 2003 year and 30.7 million in the 2002 year. | |||
| Sales | $323,677,000 | $240,988,000 | 34.3% |
| Operating income | 37,997,000 | 27,620,000 | 37.6% |
| Net income | 20,749,000 | 14,625,000 | 41.9% |
| Earnings per share (a) | 0.64 | 0.46 | 39.1% |
| Year ended 12/30 | 2003 | 2002 | Change |
| Sales | $1,163,766,000 | $992,073,000 | 17.3% |
| Operating income | 152,419,000 | 124,681,000 | 22.2% |
| Net income | 75,026,000 | 61,595,000 | 21.8% |
| Earnings per share (a) | 2.32 | 2.00 | 16.0% |
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