For its second quarter ended June 30, Dorel Industries Inc. announced adjusted net income of $16.6 million, or 51 cents per diluted share, compared to adjusted net income of $19.8 million, or 61 cents per diluted share in the year-prior period. Reported net income was $16.2 million, or 50 cents per diluted share, versus $15.2 million, or 47 cents per diluted share in the 2014 second quarter.
Dorel beat a published Thomson Reuters analyst average estimate of 33 cents.
Total revenue for the quarter was $669.6 million, up 2.1% versus the period last year, according to the company. The net negative impact of foreign exchange on Dorel’s second quarter earnings was 23 cents per diluted share, the company stated.
Home furnishings revenue increased by $35.4 million or 29.9% to $153.6 million from $118.3 million. Driven by an expanded product line, the company said the segment’s sales to Internet retailers continued to drive revenue, representing over 34% of total segment sales in the quarter. As in the first quarter, sales to brick and mortar stores also increased significantly leading to double digit growth, noted the company.
“In home furnishings, we are having a breakout year with revenues increasing by 29.9% in the quarter and 23.1% year-to-date,” said Dorel president and CEO, Martin Schwartz. “Operating profit was up 65.3% and 36.9% in the quarter and six months respectively. Dorel’s juvenile and sports segments continue to operate in an environment of challenging foreign exchange rates as the U.S. dollar remains strong against practically all currencies. This had a significant effect on our earnings, impacting operating profit in the two segments combined by a net negative amount of approximately $12 million in the second quarter alone, bringing the net negative foreign exchange year-to-date impact to approximately $25 million. We have done a good job mitigating this impact with selective price increases and other proactive measures and our results reflect that. There have been numerous improvements at our Dorel juvenile China factories, and we are pleased with the progress of the integration process.”