Dorel sales rise 25% in third quarter
Sales in furniture segment climb 8.7%
Larry Thomas -- Furniture Today, 11/5/2008 8:19:27 AM
MONTREAL — Bucking the long-running industry sales slump, Dorel Inds. said third quarter sales jumped more than 25% and profits were up 3.2%.The company, whose furniture interests include ready-to-assemble specialist Ameriwood, said sales rose in each of its three business segments - juvenile products, home furnishings and recreational and leisure.
"Over the past three months, Dorel's businesses have performed well relative to the economy and other industries," said Martin Schwartz, president and CEO. "This speaks to the recognition of our brands, the value in our product offerings and the variety of price points throughout our categories."
Companywide revenues for the quarter ended Sept. 30 totaled $552.2 million, compared with $440.1 million in the same quarter last year.
Dorel, which reports its figures in U.S. dollars, said net income for the most recent quarter was $27.2 million or 82 cents per share. In last year's third quarter, profits were $26.4 million or 79 cents per share.
In its home furnishings segment, sales were $118.5 million, an increase of 8.7% from last year's third quarter.
The company said wood furniture sales were ahead of last year, while futon sales were flat and sales of metal furniture declined.
Dorel's largest segment, juvenile products, had sales of $271.4 million, an increase of 8.6% over last year's third quarter.
Third-quarter sales in the recreational and leisure segment nearly doubled to $162.3 million, due largely to the recent acquisitions of bicycle makers Cannonade and PTI Sports, which produces the Schwinn brand. The segment also includes sales of sports apparel maker Sugoi, which Dorel acquired in February.
For the nine months ended Sept. 30, companywide sales were $1.69 billion, an increase of 26.3% over the first nine months of last year.
Nine-month earnings totaled $93.7 million or $2.81 per share. That compares with $65.1 million or $1.96 per share in the first nine months of last year.
