MONTREAL \u00e2\u20ac\u201d Improved margins in ready-to-assemble furniture
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\nhelped Dorel Inds. to a 15.5% earnings increase in the first quarter, the company reported today.<\/p>\n
Dorel, which reports in U.S. dollars, said it earned $27.9 million, or 85 cents per share, on sales of $455.7 million, which were up about 1% from the comparable period last year.<\/p>\n
The company said improvements at its RTA company Ameriwood led to a gross margin improvement, with sales close to the level of a year ago. Dorel said the division was \u00e2\u20ac\u0153slightly profitable.\u00e2\u20ac\u009d Particleboard prices have stabilized and are expected to remain at current levels for the rest of the year, it added.<\/p>\n
Total home furnishings segment revenue was down 8.4% from a year earlier to $122.6 million, mainly because of a decline in the Dorel Asia imports division. A change in commission structure by certain customers led to about half of the revenue drop, the company said.<\/p>\n
Earnings from operations in the home furnishings segment declined to $2.4 million in the quarter from $4.6 million a year earlier. Compared with adjusted earnings of $5.1 million last year, which excludes about $500,000 related to Ameriwood restructuring, the earnings drop was 52.4%.<\/p>\n
Dorel said this year\u00e2\u20ac\u2122s first-quarter results also include pretax restructuring costs of $2.1 million, or $1.4 million after taxes, related to operational changes in its Dorel Europe division. Excluding all restructuring costs in both years, the company said its earnings were $29.3 million, or 89 cents per share, an increase of 19.7% from $24.5 million, or 75 cents per share, in the 2013 period.<\/p>\n
In addition to Ameriwood, Dorel sells RTA furniture under the Carina, SystemBuild, Altra and Ridgewood brands. It also has operations in the office products, juvenile goods and recreational products segments.<\/p>\n","protected":false},"excerpt":{"rendered":"
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