(Montreal) Dorel Industries posted a higher net loss from continuing operations for its fourth quarter, the result of weaker sales in the United States for its children’s products and furniture divisions.
The Montreal-based company reported a loss of US$41.4 million, or US$1.27 per share, in its most recent quarter, which compared to a loss of US$29.6 million, or 91 cents US per share, for the same period a year earlier.
Adjusted loss for the three months ended December 30 was US$39.8 million, or US$1.22 per share, compared to US$12.0 million, or 37 cents per share, for the three last months of 2021.
Revenue fell to US$340.3 million, down 21.8% from the US$435.3 million hit a year earlier.
Dorel chief executive Martin Schwartz admitted the company’s fourth-quarter performance was disappointing, pointing to lower sales volumes in the Dorel Home division being due to lower orders from retailers.
Additionally, he noted that excess inventory across the industry is driving price cuts to clear more expensive inventory, putting greater pressure on profitability.
“This combination of our pricing reduction and significantly reduced overhead absorption in our facilities due to lower sales, has sharply reduced profits,” Schwartz said in a statement late Monday.
“A substantial reduction in cost and inventory has been implemented, which will help increase our profits in the future. »
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