Dorel Industries Q2 Profit Down 21%

8/12/2009 11:27 AM ET

(RTTNews) - Wednesday, juvenile products and bicycle company Dorel Industries, Inc. (DII.A.TO) reported a decline in profit for the second quarter, reflecting lower revenues attributable to foreign exchange translation and a decline in demand as well as certain one-time charges.

Net income for the second quarter declined 21% to US$24.76 million or US$0.74 per share from US$31.35 million or US$0.94 per share in the previous year. Quarterly results included mark-to-market losses on foreign exchange contracts of US$12.6 million. Excluding these losses, earnings per share for the current quarter would have been US$1.01.

After adjusting for unrealized foreign currency gains on translation, net change in unrealized gains on derivatives, reclassification to income and future income tax expenses, total comprehensive income increased to US$53.12 million from US$29.12 million last year.

Total revenue for the quarter declined 7.2% to US$551.12 million from US$593.72 million a year ago. Sales declined to US$547.25 million from US$590.74 million in the previous year, while licensing and commission income increased to US$3.87 million from US$2.98 million last year.

By segment, Juvenile revenue declined to US$244.67 million from US$282.20 million in the previous year. Revenue from Recreational/Leisure segment increased to US$199.09 million from US$195.07 million last year. Revenue from Home Furnishings declined to US$107.36 million from US$116.45 million a year ago.

For the six-month period, net income declined to US$52.79 million or US$1.58 per share from US$66.48 million or US$1.99 per share in the same period of the previous year. Total revenue for the period declined to US$1.08 billion from US$1.15 billion last year.]

The company declared a quarterly dividend of US$0.125 per share, payable on September 9, 2009 to shareholders of record as at the close of business on August 26, 2009.

DII.A is currently trading at C$28.25, up 1.46 or 5.45%, on the Toronto Stock Exchange.