Dorel Industries Inc. said its Recreational/Leisure segment posted record first quarter results thanks to growth in both the IBD and mass channels across the globe.
“Last year was characterized by a good start, difficult second and third quarters and a reversal of that negative trend in the final quarter,” said Dorel President and CEO Martin Schwartz. “I am pleased that we are continuing to move in the right direction. Recreational/Leisure continued to drive results, posting its best quarter ever on the back of a strong 2011. Powered by brand building, continuing innovation and growing distribution across the globe, sales grew in both the IBD and mass merchant channels. There has also been operational improvement at our Apparel Footwear Group (AFG).”
Recreational/Leisure Segment
| First Quarters Ended March 31 | ||||||||||
| 2012 | 2011 | |||||||||
| Change | ||||||||||
| $ | % of rev. | $ | % of rev. | % | ||||||
| Total Revenue | 220,918 | 200,427 | 10.2% | |||||||
| Gross profit | 58,440 | 26.5% | 50,995 | 25.4% | 14.6% | |||||
| Operating profit | 21,380 | 9.7% | 17,771 | |||||||
The revenue growth of 2011 continued into the first quarter of 2012 with sales increasing in the IBD channel in the U.S., Europe and Japan. The Cannondale, GT, and Mongoose brands are doing especially well in Europe. CSG Canada also contributed to the sales growth with strong spring shipments to certain key customers. While more modest, sales were also up to the segment's mass merchant customers as favorable weather conditions helped drive consumer demand. Operating profit for the quarter was the highest ever in the segment's history, dating back to 2004. The AFG apparel division was a positive contributor to earnings and its turnaround is on track.
Outlook
