Dorel Industries – owner of Cannondale, GT, Sugoi, Schwinn, Mongoose, Iron Horse, and InSTEP – saw revenue for the year dip slightly in its 2009 results.
Year revenue fell to US$2.1 billion, compared with US$2.2 billion in 2008. Net income decreased five per cent to US$107.2 million.
Dorel's recreational/leisure segment – which includes the company's cycling portfolio – saw revenue increase, however. Over the year revenue increased 3.8 per cent to US$681.4 million from US$656.6 million in 2008. Dorel cited sales growth in the CSG division, as well as incremental revenues through business acquisitions.
Mass merchant customers in the sector saw sales drop, so organic sales declined at just over three per cent over the year. Earnings declined despite a greater proportion of sales by CSG to IBDs and sporting goods customers. Dorel said that the recession had seen customers purchase less high-end products and added that many competitors also discounted lines early in the year, 'eroding overall industry profitability'.
“As we entered 2009 we were cautious, yet confident about Dorel’s prospects,” said Dorel CEO and president Martin Schwartz. “While we were prudent and focused on cost containment, we did not reduce in any way our commitment to new product development as we recognise that this remains a key driver for us.
“Despite the downturn, we have continued to allocate funds to business acquisitions and research and development, as we invest for the future. This resulted in the introduction of a number of excellent new products in 2009 which has further strengthened our competitive position in our core Juvenile and Recreational/Leisure segments. Our commitment was most recently evidenced by our announced US$20.8 million investment to be made over the next three years at our Columbus, Indiana car seat facility for a new Design and Development Competency Centre.”