Dorel holds steady in ’09 despite heavy investment

Dorel Industries has posted its 2009 financials, which show that despite a small decline in overall revenue, the cycling sector posted a 3.8 per cent increase to US $681.4 million.

Overall pre-tax income dipped slightly from US$132.0 million in the prior year (2008) to US $128.3 million. Net takings declined by five per cent to US $107.2 million.

Dorel says: “Due to sales growth within the CSG division, as well as incremental revenues derived through the business acquisitions completed, the leisure sector posted gains.

"Partially offsetting these increases was a sales drop to the segment’s mass merchant customers. As a result, the overall segment organic sales decline for the year was just over three per cent. Earnings declined despite a greater proportion of sales by CSG to the company’s IBD and sporting goods customers.

"With the recession, consumers purchased less high-end products, trading down to lower priced items, which carry lower margins. In addition, some of the segment’s competitors chose to discount their lines early in the year, resulting in an erosion of overall industry profitability.”