Business Breaking News

The Canadian Press - ONLINE EDITION

Dorel Industries profit, revenue in fourth quarter better than expected

By: The Canadian Press

Wednesday, Mar. 6, 2013 at 10:17 AM | Comments: 0

This product image shows the Safety 1st ProGrade Lever Handle Lock from Dorel. THE CANADIAN PRESS/AP, Dorel Juvenile Group

MONTREAL - Dorel Industries Inc. (TSX:DII.B) stock jumped to its highest level in several years on Wednesday after the consumer goods company issued a generally positive outlook and fourth-quarter results that beat estimates expectations.

The maker of child car seats, furniture and bicycles says it earned US$29.1 million in the fourth quarter, up 6.4 per cent year-to-year. The profit amounted to 91 cents US per diluted share, which was 21 cents above the consensus estimate.

The company's president also said Dorel expects growth to continue this year, although 2013 has gotten off to a slower start than last year.

Traders responded by bidding up Dorel shares as high as C$42.10 on the Toronto Stock Exchange, the highest since June 2005. Dorel shares later gave up some of the gains to trade at $41.40, up $3.50 or nine per cent and still above the previous 52-week high of $40.50.

Dorel's revenue was also stronger than analysts expected, rising 10.9 per cent year-to-year to US$622.6 million — about US$30 million above a consensus revenue estimate compiled by Thomson Reuters.

In the fourth quarter of 2011, Dorel reported US$561.6 million of revenue, $27.4 million of net income and 85 cents per share of diluted earnings.

"We made substantial progress through 2012, particularly in light of the lingering tough economy," Dorel president and CEO Martin Schwartz said in a statement.

"For the 2013 year we expect to achieve overall growth in both revenues and net income through both market expansion and by continuing to invest in new products and brand support."

However, he said this year has started slower than last year.

He said both Dorel's juvenile segment and its recreational/leisure segment showed growth during the fourth quarter.

The juvenile segment's improved its earnings from the United States and Europe despite a fragile financial environment in those regions, while stressing the importance of its increased presence in Latin America.

"Dorel Chile had an outstanding fourth quarter, buoyed by strong retail sales at our 70 stores. Brazil is recovering from a difficult year in 2011 and Dorel Colombia, with its first quarter as part of the Company, also delivered sound results," Schwartz said in a statement.

In the recreational/leisure segment, he said, the fourth-quarter revenue was boosted by Dorel's ability to ship more product and strong sales of electric ride-on toys.

For the full year Dorel, which reports in U.S. currency, had $2.49 billion of revenue, up 5.3 per cent from $2.36 billion in 2011. It also had $108.6 million of net income, or $3.39 per diluted share, up from $104.59 million or $3.21 per share in 2011.

Rate this
This article has not yet been rated.

We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high. If you thought it was well written, do the same. If it doesn’t meet your standards, mark it accordingly.

You can also register and/or login to the site and join the conversation by leaving a comment.

Rate it yourself by rolling over the stars and clicking when you reach your desired rating. We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high.

Sort by: Newest to Oldest | Oldest to Newest | Most Popular 0 Comments

You can comment on most stories on brandonsun.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.

There are no comments at the moment. Be the first to post a comment below.

Post Your Comment

The Brandon Sun does not necessarily endorse any of the views posted. Comments are moderated before publication. By submitting your comment, you agree to our Terms and Conditions. New to commenting? Check out our Frequently Asked Questions.