Latest News: Dorel Scores Flat '09 Results

MONTREAL, Canada – Today Dorel Industries Inc. announced its 2009 results. Revenue for the year was slightly lower at US$ 2.1 billion as compared to US$ 2.2 billion in 2008. 2009 pre-tax income was US$128.3 million as compared to US$132.0 million in the prior year. Net income decreased 5.0% to US$107.2 million. Organic revenue growth was approximately 7% in the fourth quarter and for the year was a decline of less than 3%.

Revenues from the company’s Recreational/Leisure segment which includes Cycling Sports Group (CSG) that services IBDs as well as Pacific Cycle that targets mass merchant customers, increased 3.8% to US$681.4 million in 2009.

Dorel says: “This was due to sales growth within the CSG division as well as incremental revenues derived through the business acquisitions completed. Partially offsetting these increases was a sales drop to the segment’s mass merchant customers. As a result, the overall segment organic sales decline for the year was just over 3%. Earnings declined despite a greater proportion of sales by CSG to the Company’s IBD and sporting goods customers. With the recession, consumers purchased less high end products, trading down to lower priced items, which carry lower margins. In addition, some of the segment’s competitors chose to discount their lines early in the year, resulting in an erosion of overall industry profitability.”