Dorel hit by cyberattack causing a reduction in first quarter revenues of up to $15 million

Dorel Industries Ameriwood line. The company was hit by a cyberattack on March 29.

Photo By Dorel Industries

MONTREAL — Dorel Industries Inc. experienced a network security incident on March 29 resulting in an unauthorized third-party gaining access to certain of Dorel’s systems.

Upon discovery of the network security incident, Dorel immediately implemented countermeasures with the assistance of leading industry experts and other advisors. Dorel took proactive measures to secure its business operations, including taking certain systems and services offline. While the network security incident caused temporary disruption to parts of Dorel’s business operations, Dorel’s systems are contained, and our services are operational.

Dorel said that the timing of this incident will result in a reduction in the first quarter 2023 revenues of an estimated $12 to $15 million, of which Dorel expects the majority to be recouped in the second quarter. The negative impact on net income for the first quarter is expected to be between $4 to $5 million, which is made up principally of margin on these lost revenues.

Dorel will release first quarter 2023 results before the market opens on Monday, May 15, 2023.

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Larry Adams | Editor

Larry Adams is a Chicago-based writer and editor who writes about how things get done. A former wire service and community newspaper reporter, Larry is an award-winning writer with more than three decades of experience. In addition to writing about woodworking, he has covered science, metrology, metalworking, industrial design, quality control, imaging, Swiss and micromanufacturing . He was previously a Tabbie Award winner for his coverage of nano-based coatings technology for the automotive industry. Larry volunteers for the historic preservation group, the Kalo Foundation/Ianelli Studios, and the science-based group, Chicago Council on Science and Technology (C2ST).