August 7, 2008 / 1:55 PM / 10 years ago

UPDATE 1-Dorel profit jumps, sales stronger

(Adds detail. Figures in U.S. dollars)

OTTAWA, Aug 7 (Reuters) - Dorel Industries (DIIb.TO) reported a 61 percent jump in second-quarter profit on Thursday, excluding restructuring costs, as it raised prices and notched stronger sales of its bikes and kids’ equipment.

The company, which makes children’s products, home furnishing and recreation goods, said net profit grew to $31.3 million, or 94 cents a share, in the period ended June 30. That compares with a profit of $10.8 million, or 32 cents a share, in the same period last year.

Excluding restructuring charges, earnings rose to C$31.9 million, or 96 cents a share, from $19.8 million, or 59 cents a share.

Analysts had expected earnings of 94 cents a share before items, on average, according to Reuters Estimates.

Revenue increased 29 percent to $593.7 million from $459 million.

Sales in its juvenile segment rose 19 percent to $291.5 million and 60 percent in the recreation and leisure product division to $191.7 million. Home furnishing revenue rose 17 percent to $110.5 million.

Recreation division sales were lifted by Dorel’s acquisition of high-end bicycle maker Cannondale in February.

Dorel said it raised prices to compensate for higher commodity costs. In April the Montreal-based company warned that it was uncertain how it would fare this year amid a weak U.S. economy and increasing costs for oil, steel, and other metals.

“Considering the difficult North American economic environment and the continuing negativity around consumer spending habits, all three of our business segments have performed extraordinarily well,” Chief Executive Martin Schwartz said in a statement.

“People will always require juvenile products, and higher fuel prices, environmental concerns and a desire to be fit are increasing the popularity of bicycles.” ($1=$1.05 Canadian) (Reporting by Susan Taylor; editing by Scott Anderson)

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