Topic: How To Invest

Stock Pickers Digest Hotline – Friday, August 5, 2016

Article Excerpt

DOREL INDUSTRIES INC., $37.17, symbol DII.B on Toronto, makes a range of items, including ready-to-assemble home and office furniture; juvenile products such as car seats, strollers, high chairs and cribs; and bicycles and other sporting goods. In the three months ended June 30, 2016, sales fell 4.8%, to $637.3 million from $669.6 million a year earlier (all figures except share price in U.S. dollars). Excluding one-time items, Dorel’s earnings dropped 12.6%, to $14.5 million, or $0.45 a share, from $16.2 million, or $0.51. The company gets half of its sales from outside of North America. The high U.S. dollar hurt the contribution of those foreign sales. As well, industry-wide price discounting hurt revenue and profits from its bicycle sales. The company’s outlook remains positive: costs are falling as it shifts the manufacture of juvenile products from Europe and North America to China; and investments in its e-commerce…