Dorel profit falls despite higher revenue
(Reuters) - Dorel Industries Inc (DIIb.TO: Quote) reported a weaker-than-expected quarterly profit on Friday even as revenue rose, in part because of softer margins on sales of children's car seats and strollers, sending the company's stock down nearly 7 percent.
Operating profit in the juvenile division fell 12.7 percent. In Dorel's recreation and leisure division, which specializes in bicycles, profit rose 20.3 percent.
The Montreal-based company's brands include Safety 1st and Maxi-Cosi in juvenile products, as well as Schwinn and Mongoose bicycles.
Dorel also said it was still cautious about the outlook for the juvenile divisions because of uncertain economic conditions and volatility in currencies.
Overall, net income for the first quarter ended March 31 fell to $29.2 million, or 91 cents a share, from $31.2 million, or 94 cents, a year earlier.
Analysts, on average, had expected earnings of $1.08 per share, according to Thomson Reuters I/B/E/S.
Profit receded even though total revenue rose 2.2 percent to $621.1 million, but that was still less than the average forecast of $635.6 million.
The company said too many customers were opting for Dorel's lower-margin juvenile products, especially in the United States.
Dorel's shares were down 6.9 percent at C$26.80 early Friday afternoon on the Toronto Stock Exchange.
(Reporting by Allison Martell; Editing by Frank McGurty)
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