Dorel Industries, whose recreational/leisure division now includes Cannondale, Pacific Cycle, Schwinn and Pacific Outdoors, among others, saw adjusted net income of $100.1 million for the year ended Dec. 30, $8.1 million more than in 2006. Before adjusting for the restructuring costs in the juvenile segment and in its home furnishings unit, Dorel’s net income dropped by only $1.4 million to $87.5 million and revenues were up by 2.3 percent to $1.81 billion.
The recreational/leisure segment was a contributor to the gain, posting a 10.0 percent gain in revenues to $374.8 million and a 26.8 percent increase in earnings from operations to $33.0 million. The results don’t include those of Cannondale and Sugoi, whose acquisition by Dorel was announced last Feb. 4.
For the fourth quarter of 2007, the recreational/leisure unit recorded revenues of $85.8 million, 11.6 percent above what it was for the same period the year before. Earnings from operations for the quarter were $5.8 million, down slightly from the $5.9 million in the quarter in 2006. For the year, the gross margin of the segment improved by 0.7 percentage points, to 19.5 percent, but it would have been flat without a one-time $3.5 million inventory write-down taken in 2006.
For the company overall, quarterly revenues were up by 2.4 percent to $458.9 million. Net income rose by 3.1 percent to $22.3 million. However, excluding the restructuring costs, adjusted net income was $24.0 million, compared with $24.4 million for the same period in 2006.
