MONTREAL -- Dorel Industries Inc. (TSX: DII.B DII.A), a manufacturer of furniture, juvenile products and bikes, pronounced 2010 a "record year."
Even though revenue for the fourth quarter decreased 1.1% to US$539.5 million from US$545.3 million a year ago. Net income rose 4.2% to US$25.2 million.
Dorel's revenue for the full year rose 8.1% to US$2.3 billion as compared to US$2.1 billion in 2009. Net income was up 19.2% to US$127.9 million.
âThe fourth quarter was difficult, but we are pleased with Dorelâs full year performance," said Dorel CEO and President, Martin Schwartz. "Our divisions effectively managed challenging economic conditions with value-oriented product offerings, a strong commitment to new product development and strategic brand support. In an environment of reduced consumer discretionary spending and rising input costs, Dorel was able to deliver revenue growth of over 8% and improved earnings over the prior year. Net income in 2010 was positively impacted by a lower tax rate as compared to 2009. A significant reason for the rate decrease was the recognition of incremental tax benefits of US$9.7 million pertaining to the resolution of several prior yearsâ estimated tax positions. This non-cash amount, which represents US$0.29 per diluted share, was not recognized for accounting purposes in prior years and was only recorded in the fourth quarter of 2010 when the relevant tax authorities confirmed the recognition of these benefits."
Read more about Dorel's 2010 financial results.
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