CANADA - Dorel Industries, one of the largest canadian furniture manufacturers, announced that it recently experienced a network security incident resulting in an unauthorized third-party gaining access to certain of Dorel’s systems.

Upon discovery of the network security incident on March 29, 2023, Dorel immediately implemented countermeasures with the assistance of leading industry experts and other advisors. Dorel took proactive measures to secure its business operations, including taking certain systems and services offline.

While the network security incident caused temporary disruption to parts of Dorel’s business operations, Dorel’s systems are contained, and services are operational.

Dorel believes that the timing of this incident will result in a reduction in the first quarter 2023 revenues of an estimated USD 12.0 to USD 15.0 million, of which Dorel expects the majority to be recouped in the second quarter.

The negative impact on net income for the first quarter is expected to be between USD 4.0 to USD 5.0 million, which is made up principally of margin on these lost revenues.

Dorel will release first quarter 2023 results before the market opens on Monday, May 15, 2023.