Dorel Q4 loss from continuing operations increases on supply chain, cost issues
The Canadian PressEconomy Government Manufacturing Business cost COVID-19 Economy government loss manufacturer manufacturing Montreal Operations supply chain Technology
MONTREAL – Dorel Industries Inc. reported its net loss from continuing operations grew in the fourth quarter amid global supply chain constraints and higher costs at its children’s products and home furnishing divisions.
The Montreal-based company, which keeps its books in U.S. dollars, says it lost US$29.6 million or 91 cents per diluted share from continuing operations, compared with a loss of US$13.3 million or 41 cents per share a year earlier.
Its adjusted loss for the three months ended Dec. 30 amounted to US$12 million or 37 cents per diluted share, compared with an adjusted loss of US$9.8 million or 30 cents per share in the fourth quarter of 2020.
Revenue slipped to US$435.3 million from US$439 million a year earlier.
Analysts on average expected Dorel to report an adjusted loss of five cents per share on US$439.3 million of revenues, according to analysts polled by Refinitiv.
Dorel’s shares were down $1.35 or 11.5 per cent at $10.37 in early afternoon trading on the Toronto Stock Exchange.
“Demand was strong at many of our divisions; however, frustratingly, like many companies, we were unable to secure the necessary goods or parts to fully satisfy consumer requirements,” CEO Martin Schwartz said in a news release.
The results from continuing operations did not include the company’s sports division, which was sold Jan. 4 to Pon Holdings for US$810 million in cash.
The sports division’s gross profit was US$52.9 million on US$280.7 million in revenue for the quarter, compared with US$55.3 million on US$265.3 million in revenue a year earlier.