Dorel Industries said its Dorel Sports segment posted revenues of $260.0 million in the fourth quarter ended on Dec. 31, representing a 6 percent increase versus the fourth quarter of 2013, and the fourth consecutive quarter of growth for the segment. Excluding the impact of foreign exchange and acquisitions, the organic sales increase was around 8 percent. Adjusted operating profit improved by 45.2 percent.
Sales growth in the quarter was driven by Pacific Cycle, with sales to mass merchants increasing in both bicycles and electric ride-ons. Caloi of Brazil also saw increased sales, as well as operating profits up in the double-digit range over the fourth quarter of 2013 in local currency terms.
The results for the quarter were challenged by the drastic appreciation of the U.S. dollar against all major foreign currencies, which had a negative impact of around $4 million. Also in the quarter, Dorel Sports began operations in Chile, with costs connected with the start-up of $0.4 million.
For the full year 2014, the organic sales increase ignoring the impact of foreign exchange and acquisitions was around 8 percent. Growth was experienced with both the independent bicycle dealers (IBD) and mass merchant distribution channels. Adjusted operating profit improved in all major divisions during the year, led by a strong turnaround in the IBD channel. The net negative impact of adverse foreign exchange rates for the year was around $3 million.
The group expects Dorel Sports to see growth in the IBD channel in the second half of the year. It also anticipates another solid year for its mass market bike business.
