Dorel Profit Drops 35% on Weak Bicycle Sales

TORONTO, Canada (Mar 3) - Dorel Industries Inc.'s fourth-quarter profit sank 35 %, the maker of furniture, children and recreational products said on Thursday, blaming a sharp drop in sales of the block buster bicycle ‘Stingray’ and ready-to-assemble furniture. Shares of Dorel were down 7 %. Revenue slid 8 % to US$430.3 million from US$469.1 million a year earlier as the company experienced a decline in sales of Sting-Ray bicycles, while a restructuring in its ready-to-assemble furniture business was slower than expected. Montreal-based Dorel said its Pacific Cycle division, which makes Schwinn, GT and Mongoose bicycles, was following a huge success in 2004 with its Sting-Ray chopper bicycle, "a success that made 2005 a difficult one by comparison." Revenue at Dorel's recreational and leisure segment, which includes Pacific Cycles, declined 35.8 %, while the children's products and home furniture segments posted modest revenue increases of 1.5 % and 2 % respectively in the quarter.