Dorel Industries expects Luxembourg court ruling to impact Q3 earnings

MONTREAL, Quebec ­-  RTA, youth and nursery furniture specialist Dorel Industries Inc. said that a final tax decision handed down by the Luxembourg Administrative Tribunal late last month will impact its third quarter earnings by $1.90 per share.

The company will release its earnings for the third quarter ended Sept. 30 on Nov. 5.

The company appealed the initial Jan. 22, 2021 ruling the Luxembourg Administrative Tribunal, which said the one of the company’s subsidiaries owes 54.6 million euros in taxes, or $64.2 million.

The litigation dealt with taxation on the transfer of certain cash assets related to an internal corporate reorganization in 2015. The company says that the transfer of these cash assets was not taxable.

However, the court maintained its initial position, which means the company must pay a balance of 38.6 million euros or $45.4 million to Luxembourg tax authorities.

The company said in a statement posted on its website that it was disappointed in the judgment.

“Dorel conducted its affairs in a fully transparent and legal manner, acting with the advice of our tax and legal professionals,” said Martin Schwartz, Dorel president and CEO. “As this is a final decision of the court, we will abide by its decision.”

Thomas Russell

Home News Now Editor-in-Chief Thomas Russell has covered the furniture industry for 25 years at various daily and weekly consumer and trade publications. He can be reached at and at 336-508-4616.

View all posts by Thomas Russell →

Leave a Reply

Your email address will not be published. Required fields are marked *

Subscribe to our Newsletter for breaking news, special features and early access to all the industry stories that matter!

Sponsored By: