Business
Dorel reports second quarter 2013
Bicycle segment business fundamentals remain solid despite poor weather impacting...
About this update from Dorel Industries Inc. Class A
[{"type":"text","content":"\n\n\n\n\n\n\nBicycle segment business fundamentals remain solid despite poor weather\n impacting current volumes and profitability\n\n\nJuvenile profit down in Europe due to economic conditions but segment's\n full year earnings expected to equal 2012\n\n\nHome Furnishings' on-line sales continue to drive operating profit\n improvement \n\n\n\n\n\n\nEXCHANGES\nTSX: DII.B, DII.A\n\n\nMONTREAL, Aug. 9, 2013 /CNW Telbec/ - Dorel Industries Inc. (TSX: DII.B,\n DII.A) today announced results for the second quarter and six months\n ended June 30, 2013. Total revenue for the three month period was\n US$600.5 million, down 5.2% from US$633.7 million for the same quarter\n last year. Net income was US$13.2 million or US$0.41 per diluted share,\n a decrease of 56.4% from US$30.3 million or US$0.95 per diluted share\n reported for the second quarter a year ago. Year-to-date revenue was\n US$1.2 billion compared to US$1.25 billion last year. Net income for\n the six months was US$35.5 million or US$1.11 per diluted share\n compared to US$59.4 million or US$1.85 per diluted share.\n\n\n\"As we announced in June, second quarter earnings in the\n Recreational/Leisure segment continued to be affected by the late\n spring across the U.S., Canada and Europe. The resultant global\n slowdown in the bicycle category lowered sales in just about all\n markets, creating higher bicycle inventories and industry-wide\n discounting, particularly in the independent bicycle dealer (\"IBD\")\n channel. This discounting, combined with foreign exchange losses and\n one-time severance costs significantly affected the segment's second\n quarter profits,\" explained Dorel President and CEO Martin Schwartz.\n\n\n\"To be clear, these are matters beyond our control. Dorel's bicycle\n products are proven and our brands remain strong. We have continued to\n invest strategically in sports marketing to maintain our brand\n strength. Cannondale's Pro Cycling Team has once again proven\n beneficial with Peter Sagan winning the Green Jersey in the recent Tour\n de France for the second consecutive year. The Green Jersey is the\n race's second most important award. On another positive note, the\n introduction of Cannondale to the Chinese market last year has been\n above our expectations. While still a small component of the overall\n bicycle business, we see further p...