MONTREAL, Canada - Dorel Industries Inc owner of brands like Cannondale, GT, and Mongoose, continues to see positive results from its cycling divisions. Overall revenue for Dorel rose 2.2% to USD 621.1 million (483.4 million euro) from USD 607.8 million (473 million euro) a year ago. Net income was USD 29.2 million (22.7 million euro) compared to last year’s USD 31.2 million (24.3 million euro).
In comments published along with the company’s 1st quarter results, Dorel President and CEO Martin Schwartz said, “Recreational/Leisure continued to drive results, posting its best quarter ever on the back of a strong 2011. Powered by brand building, continuing innovation and growing distribution across the globe, sales grew in both the IBD and mass merchant channels. Dorel’s bicycle business continues to grow its revenues and earnings, and all indications are that this momentum will be maintained. Sales improved from the fourth quarter and this positive trend should continue.”
Noting that the first quarter of 2011 was the prior year’s strongest, Dorel President and CEO Martin Schwartz said that momentum thus far in 2012 is good after a tough 2011. “Last year was characterized by a good start, difficult second and third quarters and a reversal of that negative trend in the final quarter. I am pleased that we are continuing to move in the right direction”
IDB channels in the U.S., Europe, and Japan continue to grow for Dorel, with Cannondale, GT, and Mongoose brands doing especially well in Europe. CSG Canada also contributed to the sales growth with strong spring shipments to certain key customers. Mass merchant sales were more modest, but benefited from favourable weather driving consumer demand. Operating profit for the quarter was the highest ever in the segment's history, dating back to 2004. The beleaguered AFG apparel division is getting back on track, contributing positively to earnings in the first quarter.
Now in its 50th year, Dorel’s Bicycle categories include Cannondale, Schwinn, GT, Mongoose, IronHorse and SUGOI in Recreational/Leisure. Dorel has annual sales of USD 2.4 billion (1.87 billion euro) and employs 5,000 people in facilities located in twenty-two countries worldwide.