May 11, 2012 / 2:07 PM / in 5 years

UPDATE 2-Dorel profit falls despite higher revenue

* Q1 EPS $0.91 vs $0.94 a year earlier

* Revenue up 2.2 pct at $621.1 million

* Softer margins on sales of juvenile products

* Outlook is still “cautious” for juvenile sector

* Shares down nearly 7 pct on Toronto Stock Exchange (Adds detail on product mix, updates market reaction; In U.S. figures unless noted)

May 11 (Reuters) - Dorel Industries Inc 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.

$1=$1.00 Canadian Reporting by Allison Martell; Editing by Frank McGurty

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