Dorel Industries Inc. reported that company-wide net revenues rose 29.3% to $593.7 million from $459.0 million for the same period a year ago. Net income for the quarter was $31.3 million or 94 cents per diluted share compared to $10.8 million or 32 cents per diluted share in 2007.
Revenues for the company’s Recreation/Leisure division, which includes the Pacific Cycle and Cannondale businesses, increased 60.0% to $191.7 million from $119.8 million, mainly due to the acquisitions of Cannondale and Sugoi in February this year. Sales at the segment’s mass merchant customers again increased in the quarter, as demand for bicycles has risen. Gross margins were up, principally due to the contribution of higher margins on Cannondale bicycles and SUGOI clothing. Earnings from operations for the division grew 27.1% to $17.7 million from $13.9 million last year.
