Dorel Industries says network security incident will impact Q1 revenues, earnings

MONTREAL — Home furnishings and juvenile products specialist Dorel Industries said recently that it expects a recent network security incident to have a negative impact of $12 million to $15 million on its first-quarter revenues and a negative impact of $4 million to $5 million on its quarterly net income.

The company said it discovered the incident on March 29 involving an unauthorized third party gaining access to certain of its systems. In response, it immediately implemented countermeasures to address the situation with the help of industry experts and other advisers.

“Dorel took proactive measures to secure its business operations, including taking certain systems and services offline,” the company said. “While the network security incident caused temporary disruption to parts of Dorel’s business operations, Dorel’s systems are contained, and our services are operational.”

The company said that because of this incident, it expects a $12 million to $14 million reduction in first-quarter 2023 revenues. However, it expects a majority of these revenues to be recouped in the second quarter.  

The estimated $4 million to $5 million impact on income is made up largely of margin on the lost revenues.

The company will release its first-quarter results before the market opens on Monday, May 15.

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