Third-quarter sales at Dorel Industries were down 6.1%, but company officials pointed to its home furnishings division, which held sales steady, as a key factor in helping Dorel overcome struggles in its other divisions.
Total company sales for the quarter were $518.5 million, down 6.1% from the previous year. Net income for the quarter was $30.2 million, up 11.1% from the comparable quarter the previous year.
In the company’s home furnishings division, which includes Ameriwood, Cosco Home & Office and Altra, total sales for the quarter was $125.4 million, down 0.4% from the comparable quarter the previous year. Division gross profit was $22.6 million, up 67.6% from the comparable quarter the previous year.
According to the company, third-quarter earnings improvement in Home Furnishings was led by domestically produced furniture and futons. Reduced overheads and selling and administration expenses helped to narrow the losses at Cosco Home & Office and the recovery plan for this division remains on track. The import furniture businesses also improved earnings over the prior year and continue to perform to expectation.
“The fact that we have exceeded last year’s earnings for the quarter despite a difficult economic period is a tribute to the quality and value of our products and our focus on maximizing margins through cost containment, a more stable cost environment and our disciplined minimum margin requirement program,” said Martin Schwartz, Dorel’s president/CEO.
“Dorel’s multi-national operations, diverse operating segments and broad product lines have traditionally compensated for earnings variations within the company’s various operating divisions. This is the case in 2009 as strong results within North America in the Juvenile and Home Furnishing segments are offsetting less profitable results at other divisions elsewhere within the company.”