Dorel Sees Improved Q2 2019

  • Tuesday, Aug 6, 2019
  • WG
  • 15182

Montréal, Canada - Dorel Industries Inc. (TSX: DII.B, DII.A) has announced results for the second quarter and six months ended June 30, 2019. Second-quarter results. Revenue grew US$16.5 million, or 7.4%, to US$241.0 million at the Dorel Sports segment, reflecting successful new model bicycle launches and continued strength at CSG and Caloi. However, six-month revenue decreased US$5.6 million, or 1.3%, to US$425.6 million due to first-quarter softness in Pacific Cycle’s mass merchant business.

Reported and adjusted operating profit for the quarter was US$10.1 million compared to the prior year’s operating loss of US$3.3 million and adjusted operating profit of US$8.0 million, excluding restructuring and other costs. CSG recorded significant growth in adjusted operating profit with its multiple successful new product launches. Partially offsetting this increase was lower adjusted operating profit at Pacific Cycle, principally due to the negative impacts of U.S. tariffs on its China-based supply.

First half reported and adjusted operating profit was US$14.6 million compared to an operating loss of US$4.1 million and an adjusted operating profit of US$7.2 million, excluding restructuring and other costs. The first quarter of 2018 included a US$6.6 million impairment loss on trade accounts receivable from Toys“R”Us.

“New product launches at Dorel Sports have delivered excellent results and we remain encouraged going forward, particularly with the on-going success at Cycling Sports Group (CSG). Dorel Juvenile was ahead of last year and there has been progress in Europe, however, work is continuing to drive down costs and return the segment to the proper level of profitability,” commented Dorel President & CEO, Martin Schwartz.

Second-quarter revenue for the whole group was US$670.0 million, compared to US$623.2 million, up 7.5% from the same period a year ago. Reported net income was US$2.8 million or US$0.09 per diluted share, compared to a reported net loss of US$14.8 million or US$0.46 per diluted share last year. Adjusted net income was US$6.3 million or US$0.19 per diluted share, compared to US$12.7 million or US$0.39 per diluted share in 2018.

Revenue for the six months was US$1.30 billion, an increase of 2.4% compared to US$1.27 billion last year. Reported net loss was US$5.5 million or US$0.17 per diluted share, compared to US$10.0 million or US$0.31 per diluted share a year ago.