November 5, 2008 / 3:23 PM / 9 years ago

UPDATE 1-Dorel profit boosted by acquisitions

* EPS $0.82 vs $0.79

* Revenue rises 25.5 pct to $552.2 million

* Shares up 0.6 percent at C$27.55

(Adds details. In U.S. dollars)

TORONTO, Nov 5 (Reuters) - Children’s furniture and recreational products maker Dorel Industries (DIIb.TO) reported a higher quarterly profit on Wednesday, beating market expectations, helped by its acquisition of U.S. bicycle maker Cannondale.

Dorel’s products include ready-to-assemble furniture, Safety 1st children’s products, and bicycles. It earned $27.2 million, or 82 cents a share, the third quarter, up from $26.4 million, or 79 cents a share, in the year-before quarter.

Revenue was $552.2 million, up 25.5 percent from $440.1 million for the same time last year.

Analysts were expecting, on average, earnings of 81 cents a share and revenue of $520.5 million, according to Reuters Estimates.

The company’s shares were up 0.6 percent at C$27.55 on the Toronto Stock Exchange on Wednesday morning.

Sales in its juvenile segment rose 8.6 percent to $271.4 million, and sales in the recreation and leisure product division were up 99.7 percent to $162.3 million. Home furnishing revenue rose 8.7 percent to $118.5 million.

The Montreal-based company said the strong gain in its recreational and leisure division was due mostly to its February 2008 acquisition of the Cannondale bicycle company and the Sugoi Performance Apparel line.

“Sales increased in each of our three segments at a time when consumers are being particularly careful about their purchases,” Dorel President and Chief Executive Martin Schwartz said in a release. ($1=$1.15 Canadian) (Reporting by Scott Anderson; Editing by Peter Galloway)

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