Dorel’s Q4 profit hit by weak bicycle business, adjusted earnings miss estimates

MONTREAL – Dorel Industries Inc. says its net income fell sharply in the fourth quarter, dropping to US$11 million from US$29.1 million a year earlier due to weakness in its bicycle business.

Dorel makes bicycles under several brands including Cannondale and Schwinn and is also the world’s largest maker of child-safety car seats sold under numerous brands such as Safety 1st and Cosco.

The Montreal-based company’s profit, expressed in U.S. currency, amounted to 34 cents per share before adjustments.

Excluding the impact of restructuring its bicycle business, Dorel’s adjusted net income was US$19.2 million or 60 cents per diluted share.

That’s well below analyst estimates, which had already been reduced after Dorel announced in a month ago that its leisure and recreation business would be hurt by weak bicycle sales and prices.

Analysts had recently estimated Dorel would have 90 cents per share of net income or 77 cents per share on an adjusted basis.