2Q sales decline 21% at Dorel
By Larry Thomas -- Furniture Today, August 17, 2009
MONTREAL — Hurt by losses on foreign currency exchange contracts, Canadian furniture resource Dorel Inds. said its second-quarter profits fell 21%.
The company, a major supplier of juvenile products and ready-to-assemble furniture, said sales for the quarter ended June 30 declined 7.2%.
“Overall, our divisions are performing well, notwithstanding the challenging economy,” said Martin Schwartz, president and CEO. “For the second consecutive quarter, we have surpassed our internal earnings forecasts due to the implementation of stringent cost containment measures, a focus on working capital management and a more stable cost environment.”
Dorel, which reports its sales and earnings in U.S. dollars, said sales for the quarter totaled $551.1 million. That's down from $593.7 million in last year's second quarter.
Net income totaled $24.8 million or 74 cents per share. That compares with net income of $31.3 million or 94 cents per share in the same quarter last year.
Excluding the losses on currency exchange contracts, net income in the most recent quarter was $37.4 million or $1.01 per share.
The company said sales in its home furnishings segment, which includes the Ameriwood, Ridgewood and Charleswood brands, fell 7.8% to $107.4 million. Operating profits, however, more than doubled to $7.7 million.
In the juvenile products segment, sales fell 13.3% to $244.7 million and operating profits tumbled 43.4% to $16.7 million.
For the six months ended June 30, companywide sales fell 6.4% to $1.08 billion.
Six-month net income was $52.8 million or $1.58 per share. That's down 20.6% from the first half of last year, when profits were $66.5 million or $1.99 per share.
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 6/30 | 2009 | 2008 | Change |
| (a) Includes licensing and commission income of $3.9 million in the 2009 quarter, $3 million in the 2008 quarter, $7.7 million in the 2009 six months and $8 million in the 2008 six months. Also includes pretax restructuring costs of $70,000 in the 2009 quarter, $802,000 in the 2009 six months, $72,000 in the 2008 quarter and $1.6 million in the 2008 six months. |
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| Revenues | $551,123,000 | $593,724,000 | (7.2%) |
| Operating income | 43,162,000 | 55,841,000 | (22.7%) |
| Net income (a) | 24,764,000 | 31,347,000 | (21.0%) |
| Earnings per share | 0.74 | 0.94 | (21.3%) |
| 6 months ended 6/30 | 2009 | 2008 | Change |
| Revenues | $1,076,353,000 | $1,149,758,000 | (6.4%) |
| Operating income | 89,148,000 | 112,465,000 | (20.7%) |
| Net income (a) | 52,793,000 | 66,480,000 | (20.6%) |
| Earnings per share | 1.58 | 1.99 | (20.6%) |
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Dorel profits down 21% as sales fall 7.2%
Aug 12, 2009
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