Topic: Growth Stocks

Stock Pickers Digest Hotline – Friday, June 14, 2013

Article Excerpt

DOREL INDUSTRIES, $35.10, symbol DII.B on Toronto, fell over 10% this week after it announced that its earnings will fall below expectations in the current quarter. Dorel makes a wide range of products, including ready-to-assemble home and office furniture; juvenile products, such as car seats, strollers, high chairs, toddler beds and cribs; and recreational products, mainly bicycles. Continued poor weather across the U.S., Canada and Europe has led to lower-than-expected sales volumes, particularly for bicycles (which account for roughly 34% of Dorel’s sales). The slowdown has also prompted the company’s competitors in the bicycle industry to cut their prices. To offset the slow sales, Dorel is cutting costs across its recreational and leisure products segment. This includes laying off 50 employees, or roughly 5% of this business’s workforce. As a result, Dorel will record a one-time charge of $2 million U.S. for severance costs in the current quarter. Even with the weaker quarter, Dorel’s outlook is positive. Dorel Industries is a still…