Dorel Increases Third Quarter Sales and Earnings
29 Outubro 2003 - 11:47AM
PR Newswire (US)
Dorel Increases Third Quarter Sales and Earnings MONTREAL, Oct. 29
/PRNewswire-FirstCall/ -- Dorel Industries Inc. (TSX: DII.A; DII.B;
NASDAQ: DIIBF) today announced improved year-over-year results for
the third quarter ended September 30, 2003. Sales for the most
recent three month period rose 16.5% to US$298.5 million. Third
quarter net income was up 14.8% to US$18.8 million or US$0.58 per
share fully diluted compared to US$0.51 per share fully diluted a
year ago. For the nine months, sales increased 11.9% to US$840.1
million while net income grew 15.5% to US$54.3 million.
Year-to-date earnings per share were US$1.68 on a fully diluted
basis compared to US$1.55 fully diluted for the nine months a year
ago. Dorel President and CEO, Martin Schwartz, stated that
management is encouraged with the progress made during the third
quarter. "There have been several positive developments in our
various divisions during the quarter. The benefits of these efforts
have been particularly evident through the month of September as we
have witnessed an improvement in the retail sector. Current
visibility provides us with confidence that 2004 will be a most
exciting and profitable year for Dorel. Results for the third
quarter and nine months ended September 30, 2003 were as follows:
> Juvenile Third quarter sales in the Juvenile segment rose
16.0% to US$165.2 million from US$142.5 million a year ago.
Earnings from operations grew 10.4% to US$13.6 million, compared to
US$12.4 million. Nine month sales reached US$499.1 million, an
18.5% increase from last year's US$421.2 million. Earnings from
operations reached US$50.1 million, up 37.6% from the nine months
last year. While the segment posted double digit year-over-year
growth, third quarter sales in the United States were down from
last year's levels. Nonetheless, new product roll-outs are
beginning to influence sales and should have a greater impact
during the fourth quarter and through 2004. Several of these
products, including the Eddie Bauer wood collection of high chairs,
step-stools and basinets as well as Safety 1st's neat! Diaper
Disposal System have met with enthusiastic responses from consumers
in the United States. neat!, Dorel's revolutionary new product, is
being launched this week in Canada. In Europe, August sales,
normally slow because of the traditional summer holiday period,
were further significantly impacted by the widely reported heat
experienced throughout the continent. While Ampa was affected by
this situation, it continued to contribute strong numbers to the
Juvenile segment through most of the third quarter. Home
Furnishings Home Furnishings sales for the third quarter gained
17.2% to reach US$133.2 million compared to US$113.6 million a year
ago. Earnings from operations increased 3.5% to US$17.1 million
from US$16.5 million last year. For the nine months, revenues were
up 3.4% to US$341.0 million from US$329.9 million, while earnings
from operations were flat at US$46.5 million. Sales of
ready-to-assemble furniture, excluding Carina Furniture Industries
which was acquired last month, increased 6% over last year and 37%
over this year's second quarter. While margins remained relatively
constant at Dorel Asia and Cosco Home and Office, they were down in
RTA furniture. The decrease in RTA was due to aggressive sales
efforts and pricing which increased sales but also had the effect
of lowering margins. As well, since two of RTA's five factories
(excluding Carina) are located in Canada and serve the United
States, the strong Canadian dollar had a negative affect on the
segment. "The process of introducing Dorel's systems and methods
into Carina's operations is well underway," said Mr. Schwartz. "We
anticipate this will result in additional efficiencies. Going
forward, Carina's strength in the office superstore and
do-it-yourself retail chain sectors is expected to provide
opportunities for growth. Ameriwood has also been successful in
attracting new customers and new listings, notably in the
electronic superstore sector. The division has been particularly
aggressive in taking shelf space from the competition." Outlook
"While 2003 has presented its challenges, we have nonetheless made
excellent progress through the year. We have corrected certain
issues, continued to improve product development, particularly in
juvenile and have integrated two new companies, including Ampa, our
largest acquisition to date. In addition, we are now starting to
see the needed turn in retail. "It is anticipated that fourth
quarter juvenile sales in the United States will be higher for the
first time in a year. The combined effects of Ameriwood's proactive
programs and the Carina acquisition will translate into additional
gains in Home Furnishings. The positive turn in retail we have been
waiting for since the beginning of the year has now started to
materialize and we are quite excited at the prospects for 2004,"
concluded Mr. Schwartz. Guidance The Company is maintaining the
annual guidance issued August 7, 2003. Earnings will likely be
closer to the low end of the US$2.30 to US$2.40 per share range.
Sales in Juvenile are anticipated to be at the low end of the
previously announced US$675 million and US$715 million range with
earnings from operations at from 10% to 11% of sales. Expected Home
Furnishings sales will be at the higher end of the previously
announced US$460 million and US$490 million range while earnings
from operations are being maintained at the forecast of between 13%
to 14% of sales. Conference Call Dorel Industries Inc. will hold a
conference call to discuss these results today at 1:00 P.M. Eastern
Time. Interested parties can join the call by dialing (514)
807-8791 (Montreal or overseas) or (800) 814-4861 (elsewhere in
North America). The conference call can also be accessed via live
webcast at http://www.newswire.ca/ or http://www.q1234.com/ . If
you are unable to call in at this time, you may access a tape
recording of the meeting by calling 1-877-289-8525 and entering the
passcode 21022635(pound sign) on your phone. This tape recording
will be available on Wednesday, October 29 as of 3:00 P.M. until
11:59 P.M. on Wednesday, November 5, 2003. Complete financial
statements are available on the Company's website,
http://www.dorel.com/, and will be available through the SEDAR and
EDGAR websites. Profile Dorel Industries Inc. is a global
manufacturer of consumer products. It specializes in two market
segments: juvenile products and home furnishings. Dorel's extensive
product offering includes juvenile products such as infant car
seats, strollers, high chairs, toddler beds, cribs, infant health
and safety aids, play-yards and juvenile accessories; home
furnishings such as a wide variety of Ready-to-Assemble (RTA)
furniture for home and office use as well as metal folding
furniture, futons, step stools, ladders and other imported
furniture items. Dorel employs approximately 4,800 people in
fourteen countries. Major North American facilities are located in
Montreal, Quebec; Toronto and Cornwall, Ontario; Columbus, Indiana;
Wright City, Missouri; Tiffin, Ohio; Dowagiac, Michigan; and
Canton, Massachusetts. The Company's major divisions in the United
States include Ameriwood Industries and the Dorel Juvenile Group
(DJG USA), which incorporates the Cosco and Safety 1st brand names.
In Canada, Dorel operates Ridgewood Industries, Carina Furniture
Ltd. and Dorel Home Products. European operations are carried out
through the Dorel Juvenile Group (DJG Europe) located in Holland
and the Ampa Group which has major facilities in France, Italy and
Portugal. Brand names marketed in Europe are Maxi-Cosi, Bebe
Confort, Quinny, Safety 1st, Babideal, MonBebe and Baby Relax.
Dorel's imported furniture business is carried out through Dorel
Asia. Forward-Looking Statements Except for historical information
provided herein, this press release may contain information and
statements of a forward-looking nature concerning the future
performance of the Company. These statements are based on
suppositions and uncertainties as well as on management's best
possible evaluation of future events. Such factors may include,
without excluding other considerations, fluctuations in quarterly
results, evolution in customer demand for the Company's products
and services, the impact of price pressures exerted by competitors,
and general market trends or economic changes. As a result, readers
are advised that actual results may differ from expected results.