MONTREAL — Dorel Industries Inc. shares plunged nine per cent as the Montreal-based company lost money for a third-straight quarter on continued supply chain issues and high inflation.
The maker of home furniture and products for young children says its net loss from continuing operations more than doubled to US$27.2 million in the first quarter, from US$12.8 million a year earlier.
That equalled a loss of 84 cents per share for the three months ended March 31, compared with a loss of 40 cents per share in the first quarter of 2021..
Reporting in U.S. dollars, adjusted profits fell to US$4.8 million or 76 cents per share, from a loss of US$3.4 million or 10 cents per share in the first quarter of 2021.
Revenues decreased 2.4 per cent to US$428 million, from US$435.6 million in the prior year quarter.
Dorel was expected post US$447 million of revenues, according to financial data firm Refinitiv.
"Despite the current environment causing earnings to be less than prior year, we remain confident in our ability to improve earnings going forward,” stated CEO Martin Schwartz in a news release.
Dorel Home operating loss accelerated 63 per cent to US$5.5 million while revenues were off 7.5 per cent to US$211.5 million as demand was softer than 2021's stay-at-home fuelled growth.
Dorel Juvenile's operating loss was US$12.5 million, compared with a loss of US7.6 million a year ago.
Revenues grew 3.2 per cent to US$216.6 million on strong sales in the U.S. for travel systems, strollers, safety/infant health and home equipment, that offset lower car seat sales resulting from component shortages stemming from supply chain issues in Asia.
Its shares lost 71 cents or nine per cent at $7.18 in early afternoon trading on the Toronto Stock Exchange.
This report by The Canadian Press was first published May 6, 2022.
Companies in this story: (TSX:DII.B)
The Canadian Press