MONTREAL - Juvenile furniture and products manufacturer Dorel Industries said second quarter revenue rose 1.9 percent to US$619 million, but net income fell 30 percent to US$23 million, down from US$32.9 million for the period in 2010.
"Costs in the first half of 2011 are higher than last year, and given the highly conservative spending of today's typical consumer, initiating price increases to our customers is a challenge, particularly within our Juvenile segment in the U.S." says CEO Schwartz. "While the economic climate in Europe remains difficult, notably in southern Europe, Dorel Europe is protecting or increasing its juvenile products' market share. Home furnishings was affected by the still weak U.S. economy which impacted POS levels, as well as by the weaker U.S. dollar which hurt our Canadian plants shipping into the U.S."
Dorel Industries was formed in 1987 in a merger between Dorel Co. Ltd., a juvenile products company established in 1962 and Ridgewood Industries, a ready-to-assemble furniture company established in 1969. The company completed its initial public offering that same year.
U.S. wood products operations include Ameriwood Industries which produces ready-to-assemble furniture; Altra Furniture; and Cosco Home & Office. In Canada, Dorel operates Dorel Distribution Canada, Dorel Home Products and SUGOI. Abroad, operations include Dorel Europe and IGC in Australia, a manufacturer and distributor of juvenile products. Dorel Asia sources and imports home furnishings products.
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