Dorel Industries reported that fourth quarter revenues in its Dorel Sports segment were down by 1.7 percent to US$232.7 million, but grew by around 2.6 percent after excluding the negative impact of varying foreign exchange rates and the divestments of the Sugoi and Sombrio brands in the second quarter of 2018. Dorel Industries is headquartered in Montreal, Canada, but figures are reported in U.S. dollars. The company said that the results in its Sports division were disappointing, and were caused by lower than expected industry-wide consumer demand over the holiday season and the ongoing changes in the consumer products industry. Dorel Sports brands include Cannondale, Schwinn, GT, Mongoose, Caloi and IronHorse. For the year, Dorel Sports' revenues increased by 2 percent to $883 million, and by around 3.4 percent after excluding foreign exchange rate fluctuations as well as the divestments of Sugoi and Sombrio. Alongside the Sports division, Dorel Industries also operates a Home segment and a Juvenile segment.
For the fourth quarter, Dorel Sports reported an operating loss of $232.1 million as compared with an operating profit of $6.5 million in 2017. For the year, the segment's operating loss was $229.1 million as compared with an operating profit of $21.8 million in 2017.
For 2019, the company expects to see a rebound in profits for Dorel Sports, with segment revenues forecast to grow in the mid-single digits, driven by price increases related to tariffs passed on to consumers at Pacific Cycle and volume and market-share growth in Cycling Sports Group (CSG) and Caloi.