24906 Fri, 05/11/2012 - 12:30pm
MONTREAL-In a rough start to its fiscal year, Dorel Industries posted a 6.4 percent decline in net income in the first quarter, to $29.2 million. This included a 25.3 percent plummet in operating profit in the company’s home furnishings segment, to $5.8 million.
Home furnishings revenues were off 5.1 percent to $130.7 million in the quarter, which ended on March 31. A Dorel statement attributed this to reductions in sales of ready-to-assemble and folding furniture, along with the fact that the first quarter of last year saw strong results in shipments of initial customer rollouts, which didn’t occur in this year’s quarter. Overall, Dorel’s net sales rose 2.2 percent to $621.1 million.
The statement attributed the profit decline in home furnishings to decreased revenues and a less profitable sales mix. On a positive note, sales to Internet retailers continued to grow for Dorel. Martin Schwartz, president and CEO, said, “The growing importance of the Internet retail channel distribution channel for home furnishings has continued into 2012, and still offers even more opportunity for us.” Schwartz added that Dorel’s gains in the Internet sector should help make the second quarter “better than last year.”