MONTREAL- Dorel Industries recorded third-quarter gains of 6.5% in revenue and 62.4% in profit, despite experiencing dips in both of these key financial indicators in its home furnishings division.
Home furnishings, which accounts for about 22% of Dorel's total sales, reported total sales of US$135.2 million, down 2.7% from the third quarter of 2011. Operating profit for Dorel's home furnishings sector declined 13.9% to US$5.8 million for the third quarter. The company noted that "while benefiting from a stable cost environment, offsetting this was a less profitable sales mix. Internet sales for the segment continued their upward progression, maintaining the positive trend established over the past several quarters."
Company wide, Dorel's third-quarter revenue increased by US$37.5 million (6.5%) to US$613.3 million, while operatiing profit was US$35.2 million versus US$21.7 million in third quarter of last year. In addition, Dorel noted that its gross margins improved by 320 basis points or 22.8% in the third quarter as compared to the 19.6% recorded in the prior year. Most os this improvement occurred in Dorel's Juvenile segment.
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Rich Christianson is Associate Publisher and Editor at Large of Woodworking Network. During his 25+ years covering the wood products industry, Rich has toured hundreds of manufacturing plants throughout North America, Europe and Asia. His reporting has covered everything from the state of the industry and impact of wood imports to technology and environmental issues. In his current capacity he is responsible for editing the daily Woodworking Network Update newsletter and coordinating events including the annual Cabinets & Closets Conference & Expo and Canada’s biennial Woodworking Machinery & Supply Expo.
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