Dorel Industries' total revenues were off by 5.2 percent to US$600.5 million for the quarter, and its net profit plunged by 56.4 percent, down to $13.2 million. In particular, the Canadian company's recreational & leisure segment suffered a drop in operating profit of 83.0 percent to $3,681,000 during the period on 5.5 percent lower revenues of $238.2 million. The segment's gross margin fell by 2.2 percentage points to 22.9 percent. Dorel blamed the late spring in the U.S., Canada and Europe, discounting and foreign exchange losses and one-time severance costs, related to a 5 percent cut in the segment's workforce. The company pointed out that the introduction of Cannondale in China last year has performed above its expectations.

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