Topic: How To Invest

Stock Pickers Digest Hotline – Friday, March 10, 2017

Article Excerpt

DOREL INDUSTRIES INC., $32.68, symbol DII.B on Toronto, makes a range of items: ready-to-assemble home and office furniture; juvenile products such as car seats, strollers, high chairs, toddler beds and cribs; and bicycles and other sporting goods. In the fourth quarter ended December 30, 2016, sales fell 3.0%, to $648.7 million from $668.9 million a year earlier (all figures except share price in U.S. dollars). However, Dorel’s earnings dropped 45.4%, to $7.7 million, or $0.24 a share, from $14.1 million, or $0.43. In the second quarter of 2016, the company paid $19.0 million to settle a court judgement related to an unsafe child car seat. Dorel maintains its own product-liability reserves to cover potential lawsuits. The recent settlement depleted that fund. As a result, the company contributed $10.2 million to the reserves in the fourth quarter. That was the main reason for the big drop in earnings. Dorel gets 30%…