3Q sales rise 16.5% at Dorel
By Furniture Today Staff -- Furniture Today, November 10, 2003
Montreal — Dorel Inds. said third-quarter sales rose 16.5% to $298.5 million and net income increased 14.8% to $18.8 million, thanks largely to improvements in its home furnishings businesses.
For the nine months, sales increased 11.9% to $840.1 million while net income grew 15.6% to $54.3 million.
Canada's largest manufacturer of ready-to-assemble and other furniture reports its results in U.S. dollars. Dorel also does significant business in juvenile products.
"This has been a very erratic year at retail and Dorel has weathered it quite well," said Martin Schwartz, president and chief executive officer, in a conference call with securities analysts. "Not many companies can claim growth of nearly 15% in the third quarter. And indications are strong for 2004."
Dorel's home furnishings division includes Dorel Asia, Ameriwood and Cosco Home and Office. The division's third-quarter sales were $133.2 million, up 17.2% over last year's quarter. Earnings from operations increased 3.5% to $17.1 million. For the nine months, revenues were up 3.4% to $341 million, although earnings from operations were flat at $46.5 million.
Dorel said RTA furniture sales in the quarter were up 6% over last year and 37% over this year's second quarter. However, margins were down slightly due to aggressive sales efforts and pricing.
The figures do not include Carina Furniture Inds. of Toronto, an RTA producer Dorel acquired last month.
"The process of introducing Dorel's systems and methods into Carina's operations is well under way," Schwartz said. "We anticipate this will result in additional efficiencies. Carina's strength in the office superstore and do-it-yourself retail sectors is expected to provide opportunities for growth. Ameriwood also has been successful in attracting new customers, notably in the electronics superstore sector."
He said Dorel is beginning to see the much-needed turnaround at retail, and that "the combined effects of Ameriwood's programs and the Carina acquisition will translate into additional gains in home furnishings."
| Dorel Inds. | |||
|---|---|---|---|
| Owns Ameriwood, Charleswood, Cosco and Ridgewood | |||
| Earnings per share are fully diluted. | |||
| Quarter ended 9/3020032002Change | |||
| (a) Based on average shares outstanding of 32.4 million in the 2003 quarter, 32 million in the 2002 quarter, 32.3 million in the 2003 nine months and 30.3 million in the 2002 nine months. | |||
| Sales | $298,464,000 | $256,110,000 | 16.5% |
| Operating income | 38,378,000 | 33,149,000 | 15.8% |
| Net income | 18,767,000 | 16,345,000 | 14.8% |
| Earnings per share (a) | 0.58 | 0.51 | 13.7% |
| 9 months ended 9/30 | 2003 | 2002 | Change |
| Sales | $840,089,000 | $751,085,000 | 11.9% |
| Operating income | 114,422,000 | 97,061,000 | 17.9% |
| Net income | 54,277,000 | 46,969,000 | 15.6% |
| Earnings per share (a) | 1.68 | 1.55 | 8.4% |
