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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