Dorel Records Profit For Q4, Fiscal Year

Dorel Industries reported net income for the fourth quarter of $6.6 million, or 20 cents per diluted share, versus a net loss of $80.7 million, or $2.50 per diluted share, in the 2014 period.

Adjusted net income for the fourth quarter was $14.1 million, or 43 cents per diluted share, versus $11 million, or 34 cents per diluted share, in the year-ago period. Adjusted net income increased despite a net negative after-tax impact of  $9 million, or 28 cents per diluted share, due to the effect of the appreciation of the U.S. dollar versus the prior year, the company asserted. Although based in Westmount, Canada, Dorel reports results in U.S. currency terms.

Revenue for the fourth quarter was down 4.6% to $668.9 million. Adjusted for foreign exchange variation rates and business acquisitions, revenues increased by 4% in the quarter, Dorel indicated.

Dorel’s home furnishing segment’s fourth quarter revenue increased 6.9% to $162.2 million compared to last year’s $151.7 million. For the year, revenue increased 16.1% to $643.2 million compared to $553.9 million in 2014. Revenue gains for both the quarter and the year were led by increases in e-commerce sales which accounted for 44% of total segment sales in the quarter and 37% of sales for the year, the company said. Operating profit for the quarter in the furnishings segment was $9.5 million from $5.2 million in the prior quarter.

Reported net income for the full year was $25.7 million, or 79 cents per diluted share, versus a net loss of $21.3 million, or 66 cents per diluted share, in the year earlier.

Adjusted net income for the year was $58 million, or $1.78 per diluted share, versus $84 million, or $2.59 per diluted share, in 2014. The net negative after-tax impact of U.S. dollar appreciation versus the prior year was $35 million, or $1.08 per diluted share, the company maintained. Revenue was flat at $2.68 billion, with an adjusted increase of 4%, according to Dorel.