Supply chain delays deplete Dorel stock of in demand bikes, leading to fourth quarter losses
Montreal-based manufacturer terminated an agreement to go private in last month after a discussion with shareholders.
Dorel Industries Inc. says its net loss grew in the fourth quarter of last year as supply chain woes and tax issues despite a surging demand for bikes during the COVID-19 pandemic.
The company, which keeps its books in U.S. dollars, reported a net loss of US$22.9 million or 70 cents per diluted share for the quarter ended Dec. 31 compared with a loss of US$639,000 or two cents per diluted share a year earlier.
The Montreal-based company, which makes home goods, sporting goods and products for young children, says revenue for the quarter totalled US$704.4 million, up from US$653.4 million.
On an adjusted basis, the company lost 55 cents per diluted share in its most recent quarter, compared with an adjusted profit of seven cents per diluted share a year earlier.
Analysts on average had expected an adjusted profit of 30 cents per share, according to financial data firm Refinitiv.
The maker of Safety 1st car seats and Schwinn bikes terminated an agreement to go private last month after discussions with shareholders.