Dorel Industries says Q2 orders ‘have slowed’

“Providing an outlook given the current tariff situation is obviously difficult as we do not have visibility on what will transpire with existing tariffs and possible changes going forward. We believe we are in an advantageous position relative to much of our competition, but the situation is difficult nonetheless. In the second quarter, in both of our segments, orders from customers have slowed, even stopping entirely for some customers for China sourced product. This will have a negative impact on our second quarter results, and in particular in the Home segment, but given that a long-term resolution on tariffs is impossible to predict, the exact financial impact cannot be quantified as of now,” commented Dorel President & CEO, Martin Schwartz. “Longer term, our Juvenile segment is expected to continue to deliver improved earnings over the prior year. Though tariffs could challenge earnings in the short-term, the domestic manufacturing opportunity could more than offset this risk. For now, we continue to execute our business strategy that has been successful over the past several years, adjusting as necessary for external factors like tariffs and foreign exchange. In the Home segment, the focus is on transitioning to a new business model, to once again return to profitability. Predicting when that will happen is made even more difficult by the tariff situation, but this will not prevent us from making the internal changes necessary for success. We should have much better clarity soon and will be able to provide better guidance thereon in the near future,” concluded Mr. Schwartz.