MONTREAL — Dorel Industries Inc. continued to lose money last quarter, but the narrow losses marked a major improvement over the past two and a half years.
The maker of home furniture and children’s products is reporting a net loss of US$3.8 million for the quarter ended Dec. 31, compared with a US$41.4-million loss in the same period last year.
Dorel says fourth-quarter revenue rose 3.1 per cent to US$350.7 million from US$340.3 million a year earlier.
On an adjusted basis, net income from continuing operations jumped to US$200,000 or one cent per diluted share versus a loss of US$39.8 million or US$1.22 per diluted share the year before.
The result beat analysts’ expectations of an adjusted loss of seven cents per diluted share, according to financial markets data firm Refinitiv.
It also marks the first time since mid-2021 that Dorel, which sells items ranging from sofas to strollers, has notched an adjusted profit.
CEO Martin Schwartz says its home furniture sales were disappointing as the market did not rebound as expected, but that the Montreal-based company is gaining market share and its children’s products segment is almost “back on a solid footing.”
This report by The Canadian Press was first published March 12, 2024.
Companies in this story: (TSX:DII.B)
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